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Tax Court: Company creates new tool, entitled to exemption

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The Indiana Tax Court has ruled in favor of a Hammond company in its attempt to exempt certain equipment from the state’s sales and use taxes.

Hoosier Roll Shop Services LLC challenged the denial of the Indiana Department of State Revenue’s final determination denying it an exemption for equipment used and materials consumed in grinding and calibrating its mill customers’ work rolls during the 2007 and 2008 tax years. These work rolls create the proper thickness, flatness, surface texture and luster of the sheet product as it passes through them. The surfaces of the rolls must be ground and calibrated to certain specifications.

The parties’ motions for summary judgment present just one issue for the Tax Court to decide: whether Hoosier Roll produces a new good, thereby entitling it to the exemptions previously mentioned, when it grinds and calibrates work rolls. Hoosier Roll claimed that it does: it takes a work roll, a tool ground and calibrated for a certain use, and, through its grinding and calibration process, creates an entirely new tool for a different use (i.e., a remanufactured work roll). The department argued, however, that Hoosier Roll does not produce a new good, but instead provides a repair service that is designed merely to perpetuate the usable life of the work roll.

Senior Judge Thomas Fisher relied on the four questions outlined in Rotation Products Corporation v. Department of State Revenue, 690 N.E.2d 795 (Ind. Tax Ct. 1998), to determine whether a “remanufacturing” or “repairing” process produces a new product. Those questions are: What is the substantiality and complexity of the work done on the existing article and what are the physical changes to the existing article, including the addition of new parts?; How does the article’s value before and after the work compare?; How favorably does the performance of the “remanufactured” article compare with the performance of newly manufactured articles of its kind?; and Was the work performed contemplated as a normal part of the life cycle of the existing article?

Fisher determined that the answer to each of those four questions favors Hoosier Roll. It produces other tangible personal property when it grinds and calibrates its customers’ work rolls. As such, Fisher granted the company’s motion for summary judgment and denied summary judgment in favor of the Department of State Revenue in Hoosier Roll Shop Services, LLC v. Indiana Department of State Revenue, 49T10-1104-TA-29.


 

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  1. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  3. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  4. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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