SB0370 Summary

• Expands the industrial processing exemption from sales tax to include tangible personal property used in industrial processing activities by industrial processors and persons performing processing activities on their behalf.

• Adds eligible property for exemption including computers operating industrial equipment, computer-assisted manufacturing and design systems, and equipment used in production of prewritten computer software available for sale on an as-is basis.

• Defines industrial processing activities to include production, assembly, research, engineering, quality control, maintenance of machinery, remanufacturing, recycling, and material handling, with exemption limited to the percentage of time property is used for exempt purposes.

• Specifies ineligible property for exemption including real estate improvements, office furniture, vehicles requiring vehicle permits, and property used for receiving or storage of raw materials or finished goods.

• Takes effect November 30, 2015, contingent upon enactment of Senate Bill No. 369.