Testifying before a special Tax Expenditure Review Committee, OMA’s Rob Brundrett, Director, Public Policy Services, urged the committee to protect the sales and use tax manufacturing exemption.
“The rationale for these exclusions is simple: The taxes are intended to be imposed upon the final consumption of goods and now, those selected services that are subject to tax. Intermediate transactions prior to the final sale of the product, including the acquisition of machinery and equipment and the raw materials that are incorporated into the final product, are not intended to be taxed,” Brundrett said.
He recommended expansion of the exemption to: 1) temporary workers; 2) industrial janitorial and maintenance services; and 3) certain equipment and supplies used to clean food processing equipment. 4/11/2018