What if some of my purchases are used paritially for industrial processing and partially for administrative, marketing or shipping functions?
A – Although the property purchased qualifies for an industrial processing exemption, the exemption is limited to the percentage of exempt use to total use. This formula or method must be reasonable and also meet the Department’s approval. Filing for total exemption on non-industrial processing purchases or too high of an exemption on dual-usage purchases are two of the most highly scrutinized areas by State auditors. The analysis and documentation that we provide your business will give you the support you need to achieve the Department’s approval.
