Tennessee DOR Issues Ruling on Industrial Machinery Tax Exemption for Pollution Control

The Tennessee Department of Revenue (DOR) issued a letter ruling on the applicability of the state sales and use tax industrial machinery exemption to water treatment equipment and supplies. The DOR determined that certain equipment and supplies used by a frozen food manufacturer for wastewater treatment in its manufacturing process qualified for the industrial machinery exemption from sales and use tax as pollution control facilities. However, equipment and supplies used for treating water entering the manufacturing process did not qualify for the exemption. [Tenn. Dep’t of Revenue, Letter Ruling #25-05, 05/20/25]

This story was produced by Bloomberg Tax Automation, and ...