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Hi and welcome to Just Answer!a) Qualified consumers may give a direct payment blanket exemption certificate in lieu of the taxes imposed by the Tax Code, Chapter 151, for taxable items which they purchase for their own use and which items will not be resold in any manner.
See more details here - http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=288 Thus the Direct Pay exemption certificate exempts the purchaser to pay sales tax to sellers in anticipation that the seller will pay corresponding use tax on their own.For more information - see - publication 94-105, "Guidelines for Collecting Local Sales and Use Tax," - http://www.window.state.tx.us/taxinfo/taxpubs/tx94_105.pdf For Manufacturing Exemptions - see this publication - http://www.window.state.tx.us/taxinfo/taxpubs/tx94_124.html
What is exempt?
The manufacturing exemption applies to machinery or equipment that causes a physical or chemical change in a product in order to make it saleable. The manufacturing process generally begins with the first activity that changes raw materials or ingredients and ends with the packaging of the tangible personal property as it will be sold.
Besides manufacturing equipment, services performed directly on a manufactured item prior to its distribution for sale and component parts for qualifying equipment, the following items also qualify for exemption:
What is not exempt?
Non-qualifying machinery, equipment, supplies and laborThe following items do not qualify for the manufacturing exemption or refund: