KRS 139.486: Sale, use, storage, or consumption of "industrial machinery" -- Definitions

for section.

(1) As used in this section:

(a) "Industrial machinery" means machinery manufactured in Kentucky directly

used in manufacturing or processing which operations encompass all activities

commencing with the receipt of the raw materials through the point at which

the finished product is ready for sale and delivery to the purchaser.

(b) The term "processing" shall include: the processing and packaging of raw

materials, in-process materials and finished products; the processing and

packaging of farm and dairy products for sale; and the extraction of minerals,

ores, coal, clay, stone, and natural gas.

(2) Any other provision of this section to the contrary notwithstanding , the terms "sale

at retail," "retail sale," "use," "storage," and "consumption," do not include the sale,

use, storage, or other consumption of "industrial machinery," when the "industrial

machinery" is delivered to a manufacturer or processor, or their a gent for use out of

state.

(3) For purposes of the exemptions provided in subsection (2) of this section,

"industrial machinery" will be presumed for sale, use, storage, or consumption

outside the state if:

(a) Delivery is to a common carrier, whether chos en by the seller or by the

purchaser, and whether F.O.B. seller's shipping point or F.O.B. purchaser's

destination, provided the shipping document indicates delivery to a location

outside the state; or

(b) Delivery is made by seller's own transportation ve hicles to a location outside

the state.