KBR Must Take Louisiana Machinery Tax Break Arguments to Trial

Kellogg, Brown & Root LLC and an ammonia maker convinced the Louisiana Board of Tax Appeals that goods for construction of a manufacturing plant can qualify for an exclusion from use tax.

But a trial is needed to decide which items warrant the tax break, Judge Cade R. Cole wrote for the board, which rejected the Jefferson Parish tax collector’s argument that each item must touch the raw material in the manufacturing process to qualify for the manufacturing machinery and equipment exclusion. “If an item of Tangible Personal Property is shown to have direct and immediate effect on the actual ...