77-2704.22. Manufacturing machinery and equipment and related services; exemption.
200 words·~1 min read·
/ne/chapter-77/77-2704-22A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Sales and use taxes shall not be imposed on the gross receipts from the sale, lease, or rental and on the storage, use, or other consumption in this state of manufacturing machinery and equipment.
(2)Sales and use taxes shall not be imposed on the gross receipts from the sale of installation, repair, and maintenance services performed on or with respect to manufacturing machinery and equipment.
Because the definition of manufacturing machinery and equipment limits an exemption from sales tax for the purchase of such machinery and equipment to items purchased by a person engaged in the business of manufacturing for use in manufacturing, a manufacturer was not entitled to obtain a refund of sales tax on building materials used in the construction of an ethanol production plant where the materials were purchased by a contractor rather than by the manufacturer. Bridgeport Ethanol v. Nebraska Dept. of Rev., 284 Neb. 291, 818 N.W.2d 600 (2012).
Under section 77-2701.47 and subsection
(1)of this section, the sale of manufacturing machinery and equipment includes the sale of items that are assembled to make manufacturing machinery and equipment. Concrete Indus. v. Nebraska Dept. of Rev., 277 Neb. 897, 766 N.W.2d 103 (2009).