I have purchased a truck without a bed of any type. I take the truck to a business that sells and installs a “claw” lift. The sole use of the “claw” lift is to pick up logs and load them. Is the purchase and installation of the lift tax-exempt?

Yes, when it can be documented that a customized application of machinery or equipment is used
exclusively for the harvesting of timber, then the machinery and equipment can be purchased tax
exempt. However, this will not extend to the chassis of the truck. In this example, the truck and bare chassis is taxable. The “claw” lift and the installation of the lift, when sold to a qualified timber harvester, are exempt from tax. The installation service is a part of the sales price of the “claw” lift and can be purchased tax exempt if the “claw” lift sold by the seller is also exempt from tax. If the logger purchases the truck with the lift already installed, and there is no breakdown of the price of the truck and the lift, the total price is subject to tax.

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