Indiana DOR Determines Aggregate Manufacturer’s Dyed Diesel Fuel, Lubricant Purchases Were Exempt From Sales Tax

The Indiana Department of Revenue (DOR) March 30 determined in a letter ruling that Taxpayer’s purchases of dyed diesel fuel and lubricants were exempt from sales and use tax. Taxpayer manufactured stone aggregate and requested a refund of sales tax paid on its purchases in September 2017. The DOR partially granted the refund. Taxpayer protested. The DOR noted: 1) Taxpayer used lubricants to maintain a crusher and dyed diesel fuel in a wheel loader; 2) the crusher and wheel loader were exempt from tax because they were directly involved in the aggregate manufacturing; 3) the lubricants were exempt because the ...