That’s the latest according to a new finding from Indiana’s Dept. of Revenue.

An auto exhaust systems manufacturer purchased steel-toed boots for its employees to use in the production process. Because the equipment was used in manufacturing a product, the company filed a claim for a use tax exemption on its purchases.

But Indiana DOR denied the exemption after a critical discovery: The company had purchased the steel-toed boots and sold them to its workers at a reduced cost instead of giving away the equipment for free.

Because of that move, the company was actually providing a benefit for its employees — the opportunity to purchase protective shoes at a reduced price. Using the boots to provide workers with a benefit is a taxable use, and DOR promptly denied the company’s exemption claim.

Instead of absorbing the costs, providing workers with protective equipment and earning a valuable tax exemption, the company must remit the full amount of use taxes on its purchases.

Sounds like an expensive kick where the sun don’t shine to us.