Working with a pharmaceutical company that should qualify for manufacturing tax exemptions on their utility bills, but Consumers Energy keeps denying their applications. The issue seems to be their NAICS code - they're listed as 325412 (pharmaceutical preparations) but the utility says only 311-339 codes qualify. Anyone know the specific rules for Michigan?
Manufacturing Tax Exemption - NAICS Code Issues
Marilyn, I think you're dealing with Michigan's outdated interpretation of manufacturing codes. Pharmaceutical preparation definitely should qualify - it's clearly manufacturing. Have you tried appealing with the state regulatory commission? I've had success getting them to clarify the rules.
Arnold's right - this is a common issue with pharma companies. The key is proving the actual manufacturing activity, not just the NAICS code. Document their production processes, show they're transforming raw materials into finished products. I won a similar case in Illinois last year.
Thanks both! I'll gather documentation of their manufacturing processes and file an appeal. This could save them $8,000/month in sales tax on their electric bills. Definitely worth the fight.