In Case You Missed It: Last Week in Allyn Tax News (Nov 11, 2024)

Allyn Tax Fun Facts Happy National Veteran’s Day! Are you ready for more Allyn Tax Fun Facts?

Some states offer tax-free shopping days around Veterans Day for veterans and active-duty military personnel. For example, Louisiana has a “Veterans Day Sales Tax Holiday” where eligible veterans enjoy a sales tax exemption on certain purchases. To learn more, ask an expert here: https://lnkd.in/eMTnUw3y

Spick and Span

The Arizona Court of Appeals upheld a summary judgment decision against a taxpayer claiming the use tax exemption under Ariz. Rev. Stat. Ann. §42-5159(B)(1), which exempts "[m]achinery, or equipment, used directly in manufacturing, processing, fabricating, job printing, refining or metallurgical operations." The lower court granted the Department of Revenue summary judgment, finding that although the taxpayer's operations included some "processing" of the linens as they are cleaned and disinfected, its business as a whole was a laundry. The taxpayer claimed that the sanitization process changed the state or form of the textiles because contaminants bonded or affixed to the fabric, thus altering the composition. The court of appeals found that while the taxpayer performed mechanically and chemically intense, industrial-scale sanitization, it owned, rented, delivered, and collected the textiles that it sanitized, and thus was not introducing new products to the market, but instead was restoring the original article for repeated use. Citing precedent, the court found that the commonly understood definition of processing did not contemplate such a business, and that the taxpayer's statutory interpretation was overly broad and would encompass any business that improved marketability of a commodity. Accordingly, the court held that the business did not meet the definition of a processing operation, was not entitled to the exemption, and upheld the summary judgment.

Tax Updates in the State of Utah

The Utah State Tax Commission has issued a bulletin announcing, effective January 1, 2025, the creation of a number of MIDA (Military Installation Development Authority) sales tax locations across various cities and counties and three Inland Port sales tax locations in Millard County, Fillmore, and Weber County. Also, a new Housing and Transit Reinvestment Zone sales tax location will be created in South Jordan along with two new county locations in Salt Lake County. The bulletin further states that the Inland Port location in Emery County will be discontinued.