Jackson Excavating Co. v. Administrative Hearing Commission

JAMES R. REINHARD, Special Judge.

The sole question presented on this appeal is whether machinery and equipment used to process “raw” water into potable water is machinery used in manufacturing and, thus, exempt from the sales and use tax.

In 1977, petitioner, Jackson Excavating Company, entered into a contract with Missouri Utilities Company of Cape Girardeau, Missouri, to construct a water treatment purification plant, known as Treatment Plant No. 2. In the course of completing the contract, petitioner purchased and installed certain machinery and equipment necessary to purify water for human…