Larry Walther, Cabinet Secretary, Arkansas Department of Finance and Administration v. Welspun Tubular, LLC

Summary

The court affirmed the circuit court’s determination that Welspun’s purchases of steel grit qualified for the manufacturing-machinery-and-equipment sales and use tax exemption. The court held that the grit was used to expand an existing manufacturing facility, that Welspun manufactured articles of commerce despite producing customized pipes, and that the grit was equipment because it had continuing utility through repeated recycling. The court did not reach the separate argument concerning replacement equipment because the exemption under subdivision (a)(1) was sufficient.