Lumber Manufacturing: Production Exemption
Taxable items – Lumber manufacturing
The production exemption guide lists items that are always taxable. Taxable items that are specific to lumber manufacturers include:
- Equipment and supplies used for filing blades, such as grinders and grinding wheels
- Equipment used for loading lumber products onto railway cars and trucks
- Generators used to produce electricity to power non-production equipment (co-generation equipment)
- Equipment and materials used for shipping
Examples:- Strapping or binders used to secure lumber on railroad cars or trucks
- Airbags and lumber used as dunnage
- Shop equipment and supplies used to make repairs
Examples:- Hand tools
- Power tools and compressors, including their accessories
- Welders and cutting torches, including the gas you use to operate them
- Solvents, cleaners, degreasers, shop rags
- Paint, even if used for production equipment
- Office, maintenance, or janitorial equipment and supplies
- Marketing, promotional, sales, or transportation equipment and supplies
- Equipment and supplies to analyze or model financial results
Motor vehicles
Any motor vehicle that's required to be licensed for use on public roads is taxable. This includes vehicles with restricted-use plates and recreational-use stickers.
