§ 150-580. Exclusions and exemptions.

(1)

For purposes of this subsection:

Manufacturing machinery equipment means computers and software that are an integral part of the machinery and equipment used directly in the manufacturing process; machinery and equipment necessary to control pollution at a plant facility where pollution is produced by the manufacturing process; and machinery and equipment used to test or measure raw materials, the property undergoing manufacturing or the finished product, when such test or measurement is a necessary part of the manufacturing process.

Manufacturer means any person whose principal activity is manufacturing and who is assigned by the Louisiana Department of Labor a North American Industrial Classification System code within the manufacturing sectors 31—33, or the agricultural, forestry, fishing and hunting sector 11, as they existed in 2002.

The term "manufacturing" shall not mean or include repackaging or redistributing; cooking or preparing food products by a retailer in the regular course of retail trade; storage of tangible personal property; deliver of tangible personal property to or from the plant; delivery of tangible personal property to or from storage within the plant; or actions such as sorting, packaging or shrink wrapping the final material for ease of transporting and shipping.

(2)

The tax imposed by section 150-576 shall not apply to manufacturing machinery equipment purchased, leased or rented by manufacturers.

(a)

Except as may be otherwise specifically provided, the following transactions are exempt from the provisions of this article:

1.

A building and its structural components, unless the building or structural component is so closely related to the machinery and equipment that it houses or supports that the building or structural component can be expected to be replaced when the machinery and equipment are replaced;

2.

Heating, ventilation and air-conditioning systems, unless their installation is necessary to meet the requirements of the manufacturing process, even though the system may provide incidental comfort to employees or serve, to and insubstantial degree, nonproduction activities;

3.

Tangible personal property used to store raw materials or manufactured goods prior to the beginning of the manufacturing process or after the manufacturing process is complete.

4.

The exclusion of manufacturing machinery equipment from the provisions of taxes imposed by chapter 150 shall go as follows:

Year 1	(July 1, 2005—December 31, 2005)	@	14.00%
Year 2	(January 1, 2006—December 31, 2006)	@	28.00%
Year 3	(January 1, 2007—December 31, 2007)	@	42.00%
Year 4	(January 1, 2008—December 31, 2008)	@	56.00%
Year 5	(January 1, 2009—December 31, 2009)	@	70.00%
Year 6	(January 1, 2010—December 31, 2010)	@	84.00%
Year 7	(January 1, 2011—December 31, 2011)	@	100.00%

 

The exclusion of manufacturing machinery equipment from the provisions of taxes imposed by Chapter 150 shall apply for all purchases made on or after July 1, 2005.

(M.C.S., 20969, § 1, 12-19-02; M.C.S., Ord. No. 21886, § 1, 4-7-05)

Editor's note

M.C.S., Ord. No. 21886, § 1, adopted April 7, 2005, created § 150-581 containing the provisions set out above. At the editor's discretion, said provisions have been redesignated as § 150-580 to maintain the numerical sequence of the Code.