Biographical Information Jamie L. Larson, Director of Taxes Meijer - PDF document

28th Annual Tuesday & Wednesday, January 29‐30, 2019 Hya� Regency Columbus, Columbus, Ohio Workshop V The Manufacturing Exemption … Compared & Contrasted in the Midwest: The Application & Issues in States Other than Ohio Tuesday, January 29, 2019 4:15 p.m. to 5:15 p.m.

Biographical Information Jamie L. Larson, Director of Taxes Meijer Great Lakes LP, 2929 Walker Ave, NW, Grand Rapids, MI 49544 616-791-5991 Fax: 616-791-5144 Jamie.Larson@meijer.com Jamie began her professional career in 1989 at Arthur Andersen in the Detroit office where she worked on a variety of expatriate and Canadian commuter tax returns. After transferring to the Grand Rapids office, she focused mainly on Federal and multistate corporate income tax returns. Jamie joined Amway Corporation in 1994 where she eventually led the domestic tax area. In 2001, Jamie came to Meijer as the Manager of Tax Compliance and was later promoted to Director of Taxes. Jamie successfully drives results throughout the tax life cycle – planning, research, tax accounting, compliance and audit controversy. Her responsibilities include income, sales and use, payroll, property and miscellaneous excise taxes. Jamie is a CPA and has held various leadership positions in the Western Michigan Chapter of Tax Executive Institute. Currently, she is the chairperson of the Tax and Regulatory Committee of the Grand Rapids Chamber of Commerce and a member of the tax committees for National Retail Federation, Retail Industry Leaders Association and the Michigan Chamber of Commerce. Jamie is a graduate of Central Michigan University with a BSBA in Accounting and holds an MBA from Grand Valley State University. June Summers Haas, Partner, Honigman Miller Schwartz and Cohn LLP 222 North Washington Square, Lansing,MI 488933 jhaas@honigman.com 517.377.0734 Fax 517.365.9534 June Summers Haas is a partner with Honigman Miller Schwartz and Cohn LLP in Lansing, Michigan where she specializes in advising clients on a nationwide basis on multistate tax strategies, resolving tax disputes and litigating state tax cases. She is a nationally recognized expert on nexus issues and has been in the forefront of litigation defining the parameters of the resale exemption, establishing the applicability of the unitary business principle to Michigan taxes, establishing Michigan’s casual transaction exclusion, and distinguishing between sales of services and sales of tangible property. In addition, Ms. Haas spearheaded efforts to enact procedural reform for Michigan tax administration and has been a consultant to the Michigan Chamber of Commerce and the Legislature in drafting the Michigan Business Tax and the Corporate Income Tax. She was a consultant to the California Commission on the 21st Century Economy. Prior to joining Honigman Miller Schwartz and Cohn LLP, Ms. Haas was Michigan’s Commissioner of Revenue, administering 23 taxes, managing an 800-person tax revenue operation and advising the Governor and Treasurer on tax policy. Ms. Haas served for three years as Director of the Multistate Tax Commission’s National Nexus Program. Ms. Haas also has over twenty years of private law practice experience, including extensive state tax litigation and appellate work. She is a member of the BNA State Tax Advisory Board and the Hartman State and Local Tax Forum Advisory Board. Ms Haas has been selected for inclusion in Best Lawyers in America and Michigan Super Lawyers since 2007. She is a frequent speaker and author on state tax topics throughout the country. She was named to “The All-Decade State Tax Team” by State Tax Notes in January 2010. She is the author of the chapter on Jurisdiction to Tax in the new IPT book, State Business Income Taxation. June Summers Haas is a graduate of the University of Virginia Law School and received a bachelor’s degree with distinction in economics from George Mason University in Virginia. She is an adjunct professor in Thomas M. Cooley Law School LLM in Taxation Program.

Biographical Information Michael J. Merkel, Partner State and Local Taxation Plante Moran PLLC, 27400 Northwestern Highway, Southfield MI 48034 248.223.3264 Fax: 248.603.5805 Michael.Merkel@plantemoran.com Mike has more than 25 years of tax and accounting experience in state and local tax issues. He provides actionable insights into complex tax issues for a broad base of clients including manufacturing and distribution, construction, retail dealers, the service industry, as well as software and technology companies. Mike is one of the practice leaders of Plante Moran’s State and Local Tax group. He brings an intuitive understanding of the challenges that accompany the complexity of state and local taxation changes and issues and how they affect our clients’ business operations. He often pinpoints a problem and the most beneficial solution through providing clients with multi-state tax consulting services, including implementation of solutions to minimize sales/use taxes, income/franchise taxes, property taxes, the Michigan Business Tax, and the Michigan Corporate Income Tax. Mike earned his B.S. in Accounting from Michigan State University, and M.S. in Taxation from Walsh College. He is a member of the Michigan Association of Certified Public Accountants (MICPA), serves on MICPA’s State and Local Task Force, the AGC Tax and Fiscal Affairs Policy Committee, and is a member of the State Treasurer’s Communication Workgroup. Mike is a frequent presenter at the Michigan Tax Conference along with other local and national seminars and webinars. A small sample of his past presentations include: • Praxity North American International Tax Conference – Indirect Tax vs. Sales Tax • Michigan Tax Conference - Sales and Use Tax Audit Procedures • Praxity North American International Tax Conference – SALT View of Treaties, Conflicts with PE Rules and Taxation of Nonresidents • Michigan Tax Conference - Vanishing Ambiguity – Sales and Use Tax issues and Audits • Plante Moran Webinar – State Taxes for Software Companies • Michigan Tax Workshop – Roundup of Michigan Tax Cases • Macomb County Assessor Association – Michigan Personal Property Tax Reform • Michigan Tax Workshop – Top 10 State Tax Cases to Watch • Michigan Tax Conference – Sales & Use Tax – Current Developments • Plante Moran Webinar – Michigan Business Tax

Manufacturing in the Midwest- Illinois, Indiana, Michigan and Wisconsin Jamie Larson, Meij er Inc. Mike Merkel, Plante Moran June S ummers Haas, Honigman LLP

Agenda  Manufacturing Exemption – S cope in the Midwest  Beginning and End  Apportionment  Computers and S oftware  Chemicals  Fuel/ Electricity  S ervice Providers  Packaging  Recent Cases and Rulings 2

Manufacturing Defined  Illinois-  production of TPP , whether a finished product or for use manufacturing or assembling  a different TPP  Using procedures commonly regarded as manufacturing, processing, fabricating or refining  That changes existing material or materials into a material with a different form, use or name.  Changes must result from the process and be substantial and significant.  Indiana-  Direct production, manufacture, fabrication, assembly or finishing of TPP  as a business of integrated series of operations  Changing TPP form, composition, or character different from original  The change must be a substantial change, and must result in a transformation of property into a different product with distinctive name, character, and use.  Examples: compounding, fabricating, or assembling may qualify 3 under this definition.

Manufacturing Defined  Michigan – called Industrial Processing  Converting, conditioning TPP  By changing form, composition, quality, combination or character  Of property for ultimate sale at resale  Begins with movement from raw material storage and ends at finished goods storage  Wisconsin -  Production by machinery of a new TPP  With a different form, use, and name from existing materials,  By a process popularly regarded as manufacturing,  That begins with conveying raw materials and supplies from plant inventory to the place where work is performed in the same plant  And ends with conveying finished units of tangible personal property or item or property to first storage in the same plant. 4

Common Exemption Bases –All States  Machinery directly used in manufacturing  Repair parts  Machine foundations in MI or IN, but not IL or WI  Primary use in IL > 50%  Materials that become a component part of or ingredient in manufactured product 5

Leased Equipment  Illinois - The lease or rental of tangible personal property is not subj ect to sales tax in Illinois. Instead, the lessor is considered the consumer of the tangible personal property and must pay tax when the property is purchased.  IN/MI/WI - The lease of equipment without an operator is subj ect to tax. Indiana taxes retail transactions. Leases of tangible personal property are retail transactions. Therefore, the rental or lease of equipment is subj ect to sales/ use tax in IN/ MI/ WI unless it qualifies for a separate exemption such as Industrial Processing. 6