The Arkansas Office of Hearings and Appeals (OHA) Aug. 16 affirmed the Department of Finance and Administration’s sales and use tax refund claim denial. Taxpayer, a manufacturer, purchased tangible property and services to recondition and install machinery in its plant in Arkansas and claimed a refund for tax paid on the purchase based on an exemption for equipment that directly controls or measures the manufacturing process. Taxpayer appealed the refund denial and the OHA found: 1) Taxpayer used the machinery to measure the number of units produced, which was one step removed from the manufacturing process; 2) the machinery didn’t …
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