Lynn Gandhi Comments on Michigan’s Industrial Processing Tax Exemption

05 November 2021 Gongwer News

Foley Partner Lynn Gandhi was quoted in a Gongwer article, “Exempting Industrial Processing Use Tax for Aggregates Mired in Debate,” about legislation looking to exempt those in the aggregate industry from seeing a use tax applied to their industrial processing equipment.

“Most states offer an industrial processing exemption focused on the use of the equipment and not how the final product is used or sold,” said Gandhi. “The bill is a response to a denial of the industrial processing exemption used to manufacture aggregate, as issue lay with whether the aggregate was sold or used in Michigan.”

Gandhi added that “If the aggregate is sold in Michigan and sales tax is paid by the purchaser, then the exemption is permitted. But if the aggregate was used in Michigan, and the contractor paid use tax, then the exemption would not be permitted.”

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