Articles Posted in Supreme Court of Indiana

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Here, the Supreme Court reaffirmed the longstanding principle that direct production involves a process that includes those steps essential and integral to transforming tangible personal property into a distinct marketable good. The Supreme Court reversed the judgment of the Tax Court affirming the decision of the Department of State Revenue partially denying refund claims submitted by Petitioner for sales tax paid on blast freezing equipment and the electricity used in operating that equipment. Petitioner petitioned the Supreme Court for review, arguing that it qualified for exemptions under the relevant statutes because it engages in “direct production” when it blast freezes another company’s food product and that it engages in its own production process in producing the new, distinct marketable goods. In reversing, the Supreme Court held (1) Petitioner’s blast freezing process constitutes direct production because it represents the crucial final step in creating a distinct marketable good; and (2) the relevant statutes and regulations do not impose a requirement that Petitioner’s blast-freezing procedure be its own, separate production process. View "Merchandise Warehouse Co. v. Indiana Department of State Revenue" on Justia Law