When does computer software qualify for the sales tax industrial machinery exemption?

In order for a taxpayer to purchase computer software exempt from the sales tax under the industrial machinery exemption, the taxpayer must have previously received an industrial machinery exemption authorization issued from the Department of Revenue.  If the taxpayer has an industrial machinery exemption authorization, then it may purchase computer software without paying the sales tax if the software is primarily used (more than 50 percent of its use) to:

1)         operate industrial machinery

2)         control the manufacturing process, or

3)         perform quality control or testing of the product during the manufacturing process.

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