ILNews

Tax Court: Company creates new tool, entitled to exemption

Back to TopCommentsE-mailPrintBookmark and Share

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.


 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

ADVERTISEMENT