Public research institutions machinery and equipment

From the 2024 DOR Tax Exemption Study

82.08.025651; 82.12.025651 - Public research institutions machinery and equipment Description The sale of machinery and equipment (M&E) used primarily in a research and development operation at public research institutions is exempt from sales and use tax. Qualifying machinery and equipment includes: - Computer hardware and software. - Laboratory equipment and instruments. - Vats, tanks, and fermenters. - Equipment used to control, monitor, or operate qualifying machinery. Purpose Ensures amendments made to the M&E exemption in 2011 would not affect public research institutions. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $3.549 $3.540 $3.566 $3.595 Local Taxes $1.596 $1.592 $1.604 $1.616 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $3.245 $3.566 $3.595 Local Taxes $0.000 $1.459 $1.604 $1.616 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the research and development operation growth rate reflected in the Economic and Revenue Foreca