Manufacturing and R&D machinery and equipment

From the 2024 DOR Tax Exemption Study

Det. No.14-0006R, 34 WTD 016 (February 10, 2015) 16 Cite as Det. No. 14-0006R, 34 WTD 016 (2015) BEFORE THE APPEALS DIVISION DEPARTMENT OF REVENUE STATE OF WASHINGTON In the Matter of the Petition for Correction of ) D E T E R M I N A T I O N Assessment of ) ) No. 14-0006R . . . ) ) Registration No. . . . ) [1] RCW 82.08.02565; RCW 82.04.110: RETAIL SALES TAX – M&E EXEMPTION – DEFINITION OF MANUFACTURER. Taxpayer that purchased cigarette rolling machines for use by its customers on the customers’ materials is not a manufacturer for purposes of the M&E exemption and does not qualify for the exemption. Headnotes are provided as a convenience for the reader and are not in any way a part of the decision or in any way to be used in construing or interpreting this Determination. Margolis, A.L.J. – A seller of loose tobacco, tubes, and the use of its facilities to roll cigarettes (Taxpayer) petitions for reconsideration of Det. No. 14-0006 on grounds that its purchase of roll- your-own cigarette machines is exempt from use/deferred sales tax as machinery and equipment (M&E) used in a manufacturing operation. We deny the petition.1 ISSUE Whether Taxpayer’s purchase of roll-your-own cigaret