(b) Meat Department Engaged in Manufac- turing
Certain processes performed by meat departments are considered to be manu- facturing. Listed below are examples of three products produced by meat de- partments and the steps involved in making these products. The processes followed in producing the products in these examples are considered to be manufacturing processes. Processes sim- ilar to those described in these examples may or may not be considered to be manufacturing.
Administration Technical Services, Wis- consin Department of Revenue, Mail Stop 6-40, P.O. Box 8933, Madison, WI 53708-8933. A complete description
of the step-by-step process upon you are requesting a ruling must cluded with your request.
which be in-
The manufacturing process for each of the products in the examples below, be- gins with the removal of the raw materials from the raw materials storage area and generally ends at the point the finished product is first stored or dis- played for sale. The manufacturing process also includes the packaging of the product if the product has not been stored or displayed for sale prior to it be- ing packaged.
Machinery and Equipment – If ma- chinery and equipment used by the meat department is used exclusively and di- rectly in any of the three manufacturing processes described below, the machin- ery and equipment will qualify for exemption from Wisconsin sales and use tax. The grocer should provide the ven- dor of this machinery and equipment
Tax Exemption Certificate (Form S-211), or another fully completed exemption certificate claiming the appropriate ex- emption.
Supplies – Supplies which become an ingredient or component part of the meat products or which are used exclusively and directly by a manufacturer in manu- facturing and which are consumed, destroyed, or lose their identity in the manufacture of the meat products des- tined for sale, also qualify for exemption from Wisconsin sales and use tax. The grocer should provide the vendor of
these supplies Sales and Use (Form S-211),
with either the
Tax Exemption Certificate or another fully complet-
ed exemption certificate appropriate exemption.
Examples of Manufacturing Processes in Meat Departments
1. Bratwurst (Fresh) (No smoking re- quired)
Step 1 – Raw meat is delivered in boxes. The meat is frozen when it ar- rives and it is put into a holding cooler to maintain the proper tem- perature to prevent spoiling.
Each box of meat contains a large chunk of beef. Various beef products can be made depending on which cut of beef is in the box. For example, a box may contain a “chuck” cut. The “chuck” cut is then cut into various products such as chuck eye roasts, top blade steaks, arm pot roast, etc.
Step 2 – The meat is transported from the holding cooler, where it was placed upon arrival, to the grinder. The grinder is used to grind the meat into the desired texture.
Step 3 – After the meat is ground, it is weighed. Weighing is necessary to