GE Solid State, Inc v. Director, Division of Taxation

The Court flatly rejects the longstanding interpretation and application by the Legislature and the Division of Taxation of N.J.S.A. 54:32B-8.13a (“section 8.13a”), the “manufacturing” exemption of the Sales and Use Tax Act, N.J.S.A. 54:32B-1 to - 29. The Court now holds that the “manufacturing” exemption can apply to items of property that are used in the course of the manufacturing process even though their function in that process does not itself result in the finished product. I disagree with that determination.

In my opinion, the “for sale” requirement as reflected in the implementing…