Case Studies
Ice Used in the Packaging Process
We had a client that was in the chicken processing business. Part of their packaging process was ice, which was used to pack the fresh chickens for shipment to their customers. The ice was produced in their plant instead of being purchased for a vendor. Since they produced the ice for resale with their product, we were able to get the purchase of a large dollar ice machine exempted as machinery used in the manufacturing process.
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Nitrogen Used in the Manufacturing Process
We had a client that used nitrogen in the packaging of their product for resale. The nitrogen was inserted into their product to displace oxygen to insure freshness. The nitrogen was not purchased but produced from natural gas, which they purchased from the City. Natural gas was also purchased from the City to heat the plant. We were able to get the portion that was converted to nitrogen, which was a raw material for resale, exempt from tax.
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You could be costing your company money every day
Controller thought that they were in "great shape"
We had a controller repeatedly tell us that they were doing everything right and that we “wouldn’t find a dime”. After he left the company the division controller brought us in. At this point in time the plant had closed and we were able to only go back for 30 months (the plant had been closed for 6 months). Even with the shortened recovery period, we were able to recover over $1 million. The savings would have been greater if we had been able to get into the plant earlier.
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Contractors responsible for use taxes on real property contracts
Many of our clients utilize contractors to do work on real property. The State of Georgia treats these contractors as end users of their purchases and therefore responsible for payment of the sales and use tax. In many cases we have helped our clients determine which contractors are eligible real property contractors who are responsible for the tax and therefore stop our clients from making use tax payments on bills from these contractors.
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