When a contractor builds and runs a city-owned landfill in Tennessee, can it claim the sales-tax pollution-control credit, and which of its purchases qualify for the industrial-machinery exemption?

Plain-English summary

A company builds and runs solid-waste landfills for Tennessee cities: the municipality owns the land and holds the permits, and the company contracts to construct, operate, and manage the site. It buys lots of materials and equipment for the job and asked about two different sales-tax breaks for pollution-control purchases — a credit and an exemption. The answer came out differently for each.

No pollution-control credit (Ruling 1). Tennessee's pollution-control credit (Tenn. Code Ann. § 67-6-346) refunds 100% of the sales/use tax on systems "required and primarily used to bring the purchaser into compliance with pollution control laws … when such pollution is created in the course of the purchaser's regular business activities." The catch is built into the statute: the credit "shall not be available to persons primarily engaged in processing, treating, or controlling pollution created by others." A landfill exists to handle waste — pollution created by others — so the operator can't claim the credit, whether it owns the landfill or runs one under contract with a city.

Partial industrial-machinery exemption (Ruling 2). The industrial-machinery exemption (§ 67-6-206(a)) is the other route. Its definition of "industrial machinery" (§ 67-6-102(46)(A)(i)) covers pollution-control purchases two ways: (a) as part of "pollution control facilities" — but that path (§ 67-6-102(46)(A)(ii)) is written for a manufacturer controlling pollution from its own fabricating/processing, which a landfill is not; and (b) "use by a county or municipality or a contractor pursuant to a contract with such county or municipality for use in water pollution control or sewage systems." That second path fits this operator. (It's limited to governments and their contractors — a private landfill couldn't use it.)

The statute doesn't define "water pollution control," so the Department looked to the exemption's legislative history (the pollution-control language traces from 1968 → 1972 → 1984 → 1991) and to the legislators' stated purpose: to cover the items the federal government mandates under the Clean Air and Clean Water Acts. Since the Clean Water Act applies to local governments too, the Department reads "water pollution control" for cities and their contractors to include items the EPA requires for a municipal solid-waste landfill — for example, the composite liner and leachate-collection system the EPA mandates (40 C.F.R. § 258.40), plus machines for generating, producing, and distributing treated or untreated water (the statutory example, § 67-6-102(46)(D)(i)).

So the operator may buy EPA-required water-pollution-control items (like composite liners and leachate-collection systems) exempt — but nothing else it buys for the landfill qualifies, and only items used primarily for water pollution control count (something merely incidental doesn't). The taxpayer didn't list specific items, so the ruling doesn't bless any particular purchase, and it stresses that exemptions are construed against the taxpayer, who bears the burden — any well-founded doubt defeats the claim.

What this means for you

Landfill and waste-management operators (and their municipal partners)

The pollution-control credit is off the table for waste handlers: it's reserved for businesses cleaning up their own pollution, not those whose business is processing pollution created by others. Your realistic break is the industrial-machinery exemption, and only through the county/municipality-contractor water-pollution-control path — so the contract relationship with the city matters, and a privately owned landfill can't use this path at all. Tie each claimed item to a specific EPA Clean Water Act requirement (composite liners, leachate-collection systems, etc.) and keep documentation, because incidental items don't qualify and you carry the burden of proof.

Accountants and tax professionals

Two distinct provisions: the § 67-6-346 credit (with its "pollution created by others" disqualifier) and the § 67-6-206(a) industrial-machinery exemption (with its § 67-6-102(46)(A)(i)-(ii) and (D)(i) definitions). The Department bridged the undefined term "water pollution control" to the federal Clean Water Act via legislative history. Expect strict construction against the taxpayer (Am. Airlines v. Johnson; Rogers Group; Tibbals Flooring; United Canners) and an implicit "primarily for" requirement even where the contractor clause omits those words.

Common questions

Q: Can a landfill operator claim Tennessee's pollution-control credit?
A: No. The § 67-6-346 credit is for purchasers controlling pollution from their own business and is expressly unavailable to anyone "primarily engaged in processing, treating, or controlling pollution created by others" — which describes a landfill.

Q: What landfill purchases can be exempt as industrial machinery?
A: Materials and equipment a city (or its contractor) buys that are used primarily for water pollution control, which the Department ties to items the EPA requires under the Clean Water Act — for example, composite liners and leachate-collection systems for a municipal solid-waste landfill (§ 67-6-206(a); § 67-6-102(46)(A)(i)).

Q: Does this help a privately owned landfill?
A: Not through this path. The county/municipality-contractor water-pollution-control clause is limited to governments and their contractors; the separate "pollution control facilities" path is for manufacturers controlling pollution from their own fabricating or processing, which a landfill is not.

Q: Did the ruling approve specific equipment?
A: No. The taxpayer didn't provide a list of items, so the ruling sets the standard (EPA-required, primarily-for water pollution control) without blessing any particular purchase — and the taxpayer bears the burden of proving each item's exemption.

Q: Can I rely on this letter ruling?
A: No. A Tennessee letter ruling binds the Department only as to the specific taxpayer and facts and can be revoked or modified. Confirm your own purchases with a tax professional.

Citations and references

Tennessee statutes (Tenn. Code Ann.; Retailers' Sales Tax Act, §§ 67-6-101 to -907):

• § 67-6-346 (pollution-control credit/refund; "pollution created by others" disqualifier)
• § 67-6-206(a) (industrial-machinery exemption)
• § 67-6-102(46)(A)(i) (definition of "industrial machinery," including the county/municipality-contractor water-pollution-control and sewage-systems clause); § 67-6-102(46)(A)(ii) (definition of "pollution control facilities"); § 67-6-102(46)(D)(i) (water-pollution-control examples — machines generating/producing/distributing treated or untreated water)

Federal law cited:

• Clean Water Act; 40 C.F.R. § 258.1, § 258.40 (EPA Criteria for Municipal Solid Waste Landfills — composite liner and leachate-collection-system requirements)

Tennessee cases cited by the ruling:

• Am. Airlines, Inc. v. Johnson, 56 S.W.3d 502 (Tenn. Ct. App. 2000); Rogers Grp., Inc. v. Huddleston, 900 S.W.2d 34 (Tenn. Ct. App. 1995); Tibbals Flooring Co. v. Huddleston, 891 S.W.2d 196 (Tenn. 1994); United Canners, Inc. v. King, 696 S.W.2d 525 (Tenn. 1985) (exemptions construed against the taxpayer, who bears the burden; well-founded doubt defeats the exemption)
• Brundage v. Cumberland Cnty., 357 S.W.3d 361 (Tenn. 2011); Seals v. H&F, Inc., 301 S.W.3d 237 (Tenn. 2010); Lee Med., Inc. v. Beecher, 312 S.W.3d 515 (Tenn. 2010); Houghton v. Aramark Educ. Res., Inc., 90 S.W.3d 676 (Tenn. 2002); LeTellier v. LeTellier, 40 S.W.3d 490 (Tenn. 2001); Bryant v. HCA Health Servs. of N. Tenn., Inc., 15 S.W.3d 804 (Tenn. 2000) (plain meaning; resort to legislative intent when a statute is ambiguous)

Subject

The applicability of the Tennessee sales and use tax pollution control credit and the Tennessee sales and use tax industrial machinery exemption to a city landfill

Source

• Landing page: https://www.tn.gov/revenue/tax-resources/legal-resources/tax-rulings.html
• Original PDF: https://www.tn.gov/content/dam/tn/revenue/documents/rulings/sales/13-06.pdf

Original ruling text

TENNESSEE DEPARTMENT OF REVENUE
LETTER RULING # 13-06
Letter rulings are binding on the Department only with respect to the individual taxpayer
being addressed in the ruling. This ruling is based on the particular facts and
circumstances presented, and is an interpretation of the law at a specific point in time. The
law may have changed since this ruling was issued, possibly rendering it obsolete. The
presentation of this ruling in a redacted form is provided solely for informational purposes,
and is not intended as a statement of Departmental policy. Taxpayers should consult with a
tax professional before relying on any aspect of this ruling.
SUBJECT
The applicability of the Tennessee sales and use tax pollution control credit and the Tennessee
sales and use tax industrial machinery exemption to a city landfill.
SCOPE
This letter ruling is an interpretation and application of the tax law as it relates to a specific set of
existing facts furnished to the Department by the taxpayer. The rulings herein are binding upon
the Department, and are applicable only to the individual taxpayer being addressed.
This letter ruling may be revoked or modified by the Commissioner at any time. Such revocation
or modification shall be effective retroactively unless the following conditions are met, in which
case the revocation shall be prospective only:
(A) The taxpayer must not have misstated or omitted material facts involved in
the transaction;
(B) Facts that develop later must not be materially different from the facts upon
which the ruling was based;
(C) The applicable law must not have been changed or amended;
(D) The ruling must have been issued originally with respect to a prospective or
proposed transaction; and
(E) The taxpayer directly involved must have acted in good faith in relying upon
the ruling; and a retroactive revocation of the ruling must inure to the taxpayer’s
detriment.
FACTS
[TAXPAYER] (the “Taxpayer”) partners with municipalities to design, construct, and manage
solid waste landfills in Tennessee. The municipality owns the land, obtains the zoning and
permitting, and contracts with the Taxpayer to construct, operate, and manage the landfill for the
life of the site. The Taxpayer also provides waste collection and disposal services in Tennessee.
The Taxpayer at various times purchases materials and equipment to construct and/or operate the
solid waste disposal landfills.

1

RULINGS
1.

Do the materials and/or equipment purchased by the Taxpayer to construct and/or operate
a solid waste disposal landfill qualify for the pollution control credit found in TENN.
CODE ANN. § 67-6-346 (2011)?
Ruling: No. None of the materials or equipment purchased by the Taxpayer to construct
and/or operate a solid waste disposal landfill qualify for the pollution control credit found
in TENN. CODE ANN. § 67-6-346.

2.

Do the materials and/or equipment purchased by the Taxpayer to construct and/or operate
a solid waste disposal landfill qualify for exemption from the Tennessee sales and use tax
under TENN. CODE ANN. § 67-6-206(a) (Supp. 2012) as industrial machinery?
Ruling: The industrial machinery exemption applies to those materials and/or equipment
purchased by the Taxpayer to construct and/or operate a solid waste disposal landfill that
are used primarily for water pollution control, which is indicated by being required by the
United States Environmental Protection Agency’s rules and regulations promulgated
under the Clean Water Act. No other materials or equipment purchased by the Taxpayer
to construct and/or operate a solid waste disposal landfill qualify as exempt industrial
machinery.
ANALYSIS

Under the Retailers’ Sales Tax Act, TENN. CODE ANN. §§ 67-6-101 to -907 (2011 & Supp.
2012), retail sales of tangible personal property in Tennessee are generally subject to sales and
use tax, unless an exemption applies.
There are two important statutory “exemptions” for pollution control devices. The first,
contained in TENN. CODE ANN. § 67-6-346 (2011), is a primarily a credit, rather than an
exemption, although it may operate as an exemption. 1 The second statutory exemption for
pollution control devices is when they qualify as industrial machinery in accordance with TENN.
CODE ANN. § 67-6-206(a) (Supp. 2012). Taxpayers purchasing pollution control devices may
therefore be entitled to a pollution control credit, an industrial machinery exemption certificate,
or both, as explained below.

1. POLLUTION CONTROL CREDIT
   None of the materials or equipment purchased by the Taxpayer to construct and/or operate a
   solid waste disposal landfill qualify for the pollution control credit found in TENN. CODE ANN.
   § 67-6-346.
   The first “exemption” from Tennessee sales tax for purchases of pollution control devices is the
   credit contained in TENN. CODE ANN. § 67-6-346. That statute provides for a 100% credit of the
   1

See TENN. CODE ANN. § 67-6-346 (granting the purchaser the option of “apply[ing] to the commissioner for a
refund of the taxes paid or for authority to make such purchases exempt from the tax.” As will be discussed in the
response to Question #2, the burden is on the taxpayer to establish entitlement to any exemption. See infra note 6.

2

sales and use tax paid for “any system, method, improvement, structure, device or appliance
appurtenant thereto that is required and primarily used to bring the purchaser into compliance
with pollution control laws . . . when such pollution is created in the course of the purchaser’s
regular business activities.”
But the statute also contains an important qualifier: In order to qualify for the pollution control
credit, the purchaser of the pollution control equipment must have created the pollution it is
seeking to control through the course of the purchaser’s own regular business activities. The
statute specifically states that the credit “shall not be available to persons primarily engaged in
processing, treating, or controlling pollution created by others.” 2
The facts indicate that the Taxpayer constructs and manages landfills. Although landfills are
subject to various pollution control laws, 3 and certain new pollutants may be created as a result
of the Taxpayer’s activities at the landfill in moving, compacting, and managing waste, the
primary purpose of landfills is the “processing, treating, or controlling pollution created by
others.” 4 Regardless of whether a taxpayer manages a landfill that is privately owned or
contracts with another party, such as a municipality, to do so, the taxpayer is a person “primarily
engaged in processing, treating, or controlling pollution created by others” and is therefore not
entitled to claim the credit under TENN. CODE ANN. § 67-6-346.
Consequently, the materials and equipment purchased by the Taxpayer to construct and/or
manage the landfill do not qualify for the pollution control credit.

2. INDUSTRIAL MACHINERY EXEMPTION
   The industrial machinery exemption under TENN. CODE ANN. § 67-6-206(a) (Supp. 2012) applies
   to those materials and/or equipment purchased by the Taxpayer to construct and/or operate a
   solid waste disposal landfill that are used primarily for water pollution control, which is
   indicated by being required by the United States Environmental Protection Agency’s rules and
   regulations promulgated under the Clean Water Act. No other materials or equipment purchased
   by the Taxpayer to construct and/or operate a solid waste disposal landfill qualify as exempt
   industrial machinery.
   The second manner in which purchases of pollution control devices may be exempt from
   Tennessee sales and use tax is if they come within the scope of the industrial machinery
   exemption.
   TENN. CODE ANN. § 67-6-206(a) exempts “industrial machinery” from the sales and use tax, and
   “industrial machinery” is defined in pertinent part as
   [m]achinery, apparatus and equipment with all associated parts,
   appurtenances and accessories, including hydraulic fluids, lubricating oils, and

2

TENN. CODE ANN. § 67-6-346.

3

This will be discussed in the response to Question #2. See, e.g., infra note 18.

4

See TENN. CODE ANN. § 67-6-346.

3

greases necessary for operation and maintenance, repair parts and any necessary
repair or taxable installation labor therefor, . . . or pollution control facilities
primarily used for air pollution control or water pollution control, where the use
of such machinery, equipment or facilities is by one who engages in such
fabrication or processing as one’s principal business, . . . or such use by a county
or municipality or a contractor pursuant to a contract with such county or
municipality for use in water pollution control or sewage systems. 5
This definition opens the door to two different ways that taxpayers’ purchases of pollution
control devices may qualify for the industrial machinery exemption. 6 The first is if the taxpayer
is purchasing devices for use in or as a part of pollution control facilities. The second is if the
taxpayer is purchasing devices for use in water pollution control or sewage systems pursuant to a
contract with a county or municipality, or is itself a county or municipality.
“Pollution control facilities” is defined in pertinent part as “any system . . . used or intended for
the primary purpose of eliminating, preventing or reducing air or water pollution . . . when such
pollutants are created as a result of fabricating or processing by one who engages in fabricating
or processing as such person’s principal business activity.” 7
This definition clearly envisions a manufacturer installing devices to reduce pollutants created
during a fabrication or processing operation whereby it creates tangible personal property.
Landfills do not qualify under this portion of the exemption because their principal business is
not fabricating or processing tangible personal property, nor are most of the pollutants created by
the landfills themselves.
The second option, however, may apply to landfills in certain circumstances. As stated above,
pollution control devices “use[d] by a county or municipality or a contractor pursuant to a
contract with such county or municipality for use in water pollution control or sewage systems”
are exempt from Tennessee sales and use tax. 8
According to the facts, the Taxpayer contracts with municipalities to construct and operate
various landfills. Thus any purchases the Taxpayer makes to be used primarily for “water
5

TENN. CODE ANN. § 67-6-102(46)(A)(i) (Supp. 2012).

6

Note that, under either option, the burden is on the taxpayer to establish entitlement to an exemption from taxation.
The Tennessee Court of Appeals has stated that “[a]lthough the rule is well-established that taxing legislation should
be liberally construed in favor of the taxpayer and strictly construed against the taxing authority, it is an equally
important principle of Tennessee tax law that ‘exemptions from taxation are construed against the taxpayer who
must shoulder the heavy and exacting burden of proving the exemption.’” Am. Airlines, Inc. v. Johnson, 56 S.W.3d
502, 506 (Tenn. Ct. App. 2000) (quoting Rogers Grp., Inc. v. Huddleston, 900 S.W.2d 34, 36 (Tenn. Ct. App.
1995)). The Tennessee Court of Appeals has also stated that the burden is on the taxpayer to establish the
exemption, and any well-founded doubt is sufficient to defeat a claimed exemption from taxation. Am. Airlines, Inc.,
56 S.W.3d at 506 (citing Tibbals Flooring Co. v. Huddleston, 891 S.W.2d 196, 198 (Tenn. 1994); United Canners,
Inc. v. King, 696 S.W.2d 525, 527 (Tenn. 1985)).

7

TENN. CODE ANN. § 67-6-102(46)(A)(ii) (emphasis added).

8
See TENN. CODE ANN. § 67-6-102(46)(A)(i). Note that this exemption is limited to counties, municipalities, or their
contractors, so a private landfill cannot qualify for an exemption under this portion of the industrial machinery
exemption.

4

pollution control or sewage systems” would be exempt. 9 It is unlikely that a landfill would have
any involvement with “sewage systems,” so the remaining discussion will focus on “water
pollution control.”
The Tennessee Code Annotated fails to define “water pollution control,” although it does state
that industrial machinery “used primarily for the control of . . . water pollution includes, but is
not limited to . . . [m]achines used for generating, producing, and distributing . . . treated or
untreated water.” 10
Tennessee’s courts apply the “plain meaning” of a statute, but if an ambiguity exists, the courts
look to derive the General Assembly’s intent from the “‘broader statutory scheme, the history of
the legislation, or other sources.’” 11 An ambiguity exists if the statute “can reasonably have more
than one meaning.” 12
Notwithstanding the example provided in TENN. CODE ANN. § 67-6-102(46)(D)(i), water
pollution control could reasonably encompass any number of items, so it is appropriate to turn to
the legislative history of the industrial machinery exemption to determine the Legislature’s
intent.
When codified in 1959, the industrial machinery exemption had no reference to pollution control
devices. 13 The first reference to pollution control came in a 1968 amendment that created a new
industrial machinery definition containing the clause “equipment primarily used for air pollution
control or stream pollution control, where the use of such machinery or equipment is by one who
engages in such fabrication or processing as his principal business.” 14
In 1972, the General Assembly added a new clause to the industrial machinery exemption,
exempting “such use by a county or municipality or a contractor pursuant to a contract with such

9

In order to qualify for the industrial machinery exemption in other contexts, a taxpayer must show that its purchase
is “primarily for” the fabrication or processing of tangible personal property, for example. See TENN. CODE ANN. §
67-6-106(46)(A)(i). The same requirement applies to “pollution control facilities” in that the pollution control
facilities must be “primarily used for air pollution control or water pollution control.” Id. Even though the clause of
the industrial machinery definition granting an exemption to counties, municipalities, and their contractors for water
pollution control and sewage systems does not contain a similar “primarily for” requirement, it is implicit that an
item only incidental to water pollution control would not qualify for the industrial machinery exemption.
10

TENN. CODE ANN. § 67-6-102(46)(D)(i).

11

Brundage v. Cumberland Cnty., 357 S.W.3d 361, 365 (Tenn. 2011) (quoting Seals v. H&F, Inc., 301 S.W.3d 237,
242 (Tenn. 2010)); see also Lee Med., Inc. v. Beecher, 312 S.W.3d 515, 527 (Tenn. 2010); Houghton v. Aramark
Educ. Res., Inc., 90 S.W.3d 676, 679 (Tenn. 2002).
12

Lee Med., Inc., 312 S.W.3d at 527 & n.20 (citing LeTellier v. LeTellier, 40 S.W.3d 490, 498 (Tenn. 2001); Bryant
v. HCA Health Servs. of N. Tenn., Inc., 15 S.W.3d 804, 809 (Tenn. 2000)).
13

See Act of Feb. 5, 1959, ch. 15, § 1, 1959 Tenn. Pub. Acts 130, 130 (codifying the definition of “machinery for
new and expanded industry”); see also Act of Mar. 13, 1963, ch. 172, § 1, 1963 Tenn. Pub. Acts 769, 769 (replacing
the “machinery for new and expanded industry” definition with a definition of “industrial machinery”).
14

See Act of Apr. 3, 1968, ch. 557, § 1, 1968 Tenn. Pub. Acts 512, 513.

5

county or municipality for use in stream pollution control or sewage systems.” 15 The legislature
again replaced the industrial machinery definition in 1984 with similar language, changing
“stream pollution control” to “water pollution control” and included the examples of pollution
control now codified in TENN. CODE ANN. § 67-6-102(46)(D)(i)-(ii) (Supp. 2012). 16
Finally, in 1991, the General Assembly deleted and replaced the industrial machinery definition
with a version substantially similar to the current codification as relates to pollution control. This
legislation added a definition of “pollution control facilities,” and clarified that one way for
purchases of pollution control devices to be exempt from Tennessee sales and use tax is if they
qualify as pollution control facilities.
Legislators made a number of statements while considering the 1991 legislation that illumine the
General Assembly’s intended meaning of “pollution control.” One representative stated before
the Tennessee House Finance, Ways and Means Committee on May 21, 1991, that the purpose of
the bill was to “bring[] into practice the interpretation that the Department of Revenue has used
and includes those items that the Feds have now mandated that businesses [use] under the Clean
Air and Clean Water [Acts] to employ to protect our environment.” Senator Leonard Dunavant
confirmed this purpose before the Tennessee Senate Finance, Ways and Means Committee on
May 29, 1991, explaining that “all states are under the federal law, the Clean Air Act and the
Clean Water Act, and they’re having to spend money to bring themselves into compliance.” He
further suggested that this measure was needed to keep Tennessee competitive for attracting
companies and that the purpose of the exemption was to protect “[t]he people [that] have to
purchase and install [pollution control equipment].”
Although the “pollution control facilities” portion of the industrial machinery exemption is only
applicable to private manufacturers as discussed above, the requirements of the federal Clean
Water Act apply to state and local government as well as private entities. It is both fair and
reasonable to apply a similar meaning for “water pollution control” in the context of counties,
municipalities, and their contractors.
In other words, in determining which aspects of a landfill operated by a county, municipality, or
its contractor qualify as industrial machinery, the legislative history indicates that the exemption
is available for those pollution control devices that are primarily used to comply with the
requirements of the Clean Water Act, in addition to any devices that fall under TENN. CODE ANN.
§ 67-6-102(46)(D)(i).
For example, the Clean Water Act empowered the United States Environmental Protection
Agency [hereinafter EPA] to regulate landfills. 17 Among its requirements, for example, the EPA
requires all new municipal solid waste landfills to be constructed “[w]ith a composite liner . . .
and a leachate collection system that is designed and constructed to maintain less than a 30-cm
15

See Act of Mar. 30, 1972, ch. 709, § 1, 1972 Tenn. Pub. Acts 768, 769. Although this legislation is the most
relevant for purposes of this ruling, the legislative tapes yielded no information helpful to discerning legislative
intent.
16

See Act of May 9, 1984, ch. 762, §§ 1, 3, 1984 Tenn. Pub. Acts 481, 482.

17

See EPA Criteria for Municipal Solid Waste Landfills, 40 C.F.R. § 258.1 (2010).

6

depth of leachate over the liner.” 18 The Taxpayer may thus purchase, among other items,
composite liners and leachate collection systems 19 as required by EPA regulations exempt from
Tennessee sales and use tax. 20
In summary, the industrial machinery exemption applies to counties’, municipalities’, and their
contractors’ purchases of items primarily for use in water pollution control, which includes items
required to be installed by the EPA pursuant to its power under the Clean Water Act and
“[m]achiness used for generating, producing, and distributing . . . treated or untreated water.”
The Taxpayer, as a contractor operating solid waste landfills pursuant to its contracts with
various municipalities, may make Tennessee sales tax purchases of those items primarily for use
in water pollution control as discussed above.

R. John Grubb II
Tax Counsel

18

APPROVED:

Richard H. Roberts
Commissioner of Revenue

DATE:

02/25/13

EPA Criteria for Municipal Solid Waste Landfills, 40 C.F.R. § 258.40 (2010).

19

The Taxpayer did not provide a list of specific items it has purchased or will purchase for use pursuant to its
landfill contracts, so this ruling does not address whether any particular item is exempt from Tennessee sales and use
tax.
20

Note that the EPA may impose other requirements, such as the performance of a geological survey, that would not
be subject to tax because they are not taxable services.

7