KRS 139.486 — Sale, use, storage, or consumption of "industrial machinery" -- Definitions for section

(1) As used in this section:
(a) "Industrial machinery" means machinery manufactured in Kentucky directly
used in manufacturing or processing which operations encompass all activities
commencing with the receipt of the raw materials through the point at which
the finished product is ready for sale and delivery to the purchaser.
(b) The term "processing" shall include: the processing and packaging of raw
materials, in-process materials and finished products; the processing and
packaging of farm and dairy products for sale; and the extraction of minerals,
ores, coal, clay, stone, and natural gas.
(2) Any other provision of this section to the contrary notwithstanding , the terms "sale
at retail," "retail sale," "use," "storage," and "consumption," do not include the sale,
use, storage, or other consumption of "industrial machinery," when the "industrial
machinery" is delivered to a manufacturer or processor, or their a gent for use out of
state.
(3) For purposes of the exemptions provided in subsection (2) of this section,
"industrial machinery" will be presumed for sale, use, storage, or consumption
outside the state if:
(a) Delivery is to a common carrier, whether chos en by the seller or by the
purchaser, and whether F.O.B. seller's shipping point or F.O.B. purchaser's
destination, provided the shipping document indicates delivery to a location
outside the state; or
(b) Delivery is made by seller's own transportation ve hicles to a location outside
the state.