The Sales Tax Professionals

Manufacturing

This term is usually applied generically to the activities falling within the “production exemption,” assembling, generating, processing, mining, extracting and refining a product for sale. Manufacturing is the creation of a new product from raw materials and any process in which the raw materials lose their original identity in producing the newly created product. An example would include the manufacture of paper. The trees (a raw material) lose their identity in the creation of the manufactured product.

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