No. If the welder is not going to be part of the final fabricated piece, it does not qualify. All M&E Exempt equipment must be used directly on research at least 50% of the time.
Yes. The exemption applies to both "sales to" and "use by" a public research institution of machinery and equipment used primarily in a research and development operation."
Yes. Excise Tax Advisory 3127.2009 states, “a laboratory table…integral to an R&D operation,” as well as “a chair used in a laboratory workstation…integral to an R&D operation” both would qualify for the exemption. It specifically notes that furniture not used directly in R&D work is not considered integral and does not qualify.
Yes. Add costs to existing pieces of M&E qualifying equipment can qualify for the exemption, even if they are under $200.
EIO consulted with the Tax Office on this question. Shipping on loaned equipment is okay to code as M&E tax exempt. The reason for this is that shipping or transportation services bought as a stand-alone purchase are not subject to sales tax. Since there is no underlying cost or sales price (to the University) for a loaned piece of equipment, shipping costs would be considered stand-alone and not subject to sales tax anyway. These costs should be coded 05-41.
Yes. Allowing this is consistent with how we treat components of a fabrication that are under $200 and also aligns with the Equipment Inventory Office's System Policy.
Please include comments to this effect on the requisition.
Yes, these items can be purchased as 05-41 due to the fabricated item qualifying for the M&E Exemption. The department will need to provide a comment stating that the items are going into a fabrication and also provide the fabrication tag number.