Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2014
Property Tax Annotations
205.0000 BUSINESS INVENTORY EXEMPTION
205.0075 Manufacturing. The following types of property are eligible for the exemption:
1. Manufacturing supplies, such as nuts, bolts, and screws that will be incorporated in a product that is to be sold.
2. Parts held by manufacturers so as to perform warranty service on products that sell, even though the parts are not sold outright.
3. Sand and gravel held by a licensed contractor for incorporation into a bridge or roadbed not for his own use.
4. Lumber held at a job site by a licensed contractor for incorporation into a building not for his own use.
5. Factory-built housing held for sale by the manufacturer if held for sale as individual sections of a building or if the manufacturer is a licensed contractor and assembles the sections at a building site and then sells the building.
The following types of property are ineligible:
1. Manufacturing supplies, such as drill bits, that are not physically incorporated into a product.
2. Catalytic materials which are not intentionally incorporated into a product.
3. Machinery and equipment held for use.
4. Dies, patterns, jigs, or tools held for use.
5. Unmined materials, such as iron ore. LTA 4/25/1980 (No. 80/69).