Bus Plugs Painted to be Not Taxable
MIDWEST’s Switchgear Shop received an unusual request for blue Square D bus plugs and black General Electric bus plugs. Plus, we were asked if we could paint ITE and Cutler Hammer bus plugs other colors and if we could put a unique label on each bus plug. Of course the answer was yes, but this was different. We have reconditioned Westinghouse bus plugs and Cutler Hammer Bus Plugs that were already painted black and we had to repaint them gray. We had some Square D bus plugs and General Electric Bus Plugs that were a 1950’s kitchen cream color and looked like they had been repainted every ten years. But this was the first time that a customer requested a specific color, other than the manufacturer’s original color, which is usually gray.
They had a lot of 30 amp and 60 amp bus plugs. Quite a few 100 amp bus plugs and a couple 200 amp bus plugs and one large 400 amp bus plug. But what was really unusual was their reason for the color coding and labeling. It appears that, in some states, bus duct and bus plugs that are used only on a specific manufacturing machine or production process, are exempt from state tax. If they buy replacement bus plugs or have service on the existing bus plugs, the replacements and service is non taxable. If the bus plugs or bus duct are used on something other than a specific manufacturing machine or process, service and equipment is taxable. They wanted the bus plugs for a specific process to be all the same color. They also wanted the bus plugs to be painted the same color as the bus duct and to be labeled for the specific manufacturing machine or process. We are not state tax experts, but, as they explained it, it seemed to make sense.