| Date: | 12/04/1981 |
|---|---|
| Organization: | Massachusetts Department of Revenue |
| Referenced Sources: | Massachusetts General Laws |
Sales and Use Tax
December 4, 1981
Your client ("Ski Area") operates a ski resort located in Massachusetts. The Ski Area purchases snow making equipment and uses it to produce snow for its ski slopes. You inquire whether the Massachusetts sales tax applies to purchases of equipment used to produce snow and to purchases of electricity used to operate such equipment.
Massachusetts General Laws Chapter 64H, Section 6(r) exempts from tax sales of materials, tools and fuel, or any substitute therefor, which are consumed and used directly and exclusively in an industrial plant in the actual manufacture of tangible personal property to be sold.
Chapter 64H, Section 6(s) exempts from tax sales of machinery, or replacement parts thereof, used directly and exclusively in an industrial plant in the actual manufacture, conversion or processing of tangible personal property to be sold.
Chapter 64H, Section 6(i) exempts from tax the
"sales, furnishing or service of gas, water, electricity, steam, telephone and telegraph."
Based on the foregoing, it is ruled that the Ski Area is purchases of equipment used to produce snow are subject to the sales tax; its purchases of electricity used to operate such equipment are exempt from sales tax.
Very truly yours,
/s/L. Joyce Hamper
L. Joyce Hampers
Commissioner of Revenue
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LR 81-106