What is the “majority use threshold?”
When you use machinery and equipment directly in a qualifying manufacturing activity and also in nonqualifying activities, the M&E is eligible for exemption only if the qualifying use meets the majority use requirement, as detailed in WAC 458-20-13601.
Typically, the majority use threshold is determined on a case-by-case basis, looking at the machinery and equipment's use during a calendar year using any of the following:
Other comparable comparison measurements
Examples: A forklift that is used at the manufacturing site to lift barrels of wine 75% of the year and is used in the non-qualifying farming operation to lift crates of grapes onto trucks the remaining 25% of the time meets the majority use threshold. A pick-up truck does not meet the threshold if it is used at the manufacturing site to move grape bins around the manufacturing site for 2 weeks of the year and used for general transportation off the manufacturing site the remaining 50 weeks.
See WAC 458-20-13601 for a more in-depth discussion of the exemption and qualifying criteria.