Commonwealth v. Orange-Madison Cooperative Farm Service

Orange-Madison Cooperative Farm Service filed an application, pursuant to Code § 58-1130, for correction of an allegedly erroneous assessment of sales and use taxes on certain machinery, fuel, and equipment used in its feed and fertilizer operations. The trial court held that because the machinery, fuel, and equipment were used in manufacturing or processing, they were exempt from sales and use taxes under the provisions of Code § 58-441.6.

The sole question presented is whether Orange-Madison’s operation of its feed and fertilizer plants constituted industrial processing within the meaning of…