Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
275.0000 GAS, ELECTRICITY AND WATER
(a) DELIVERY THROUGH MAINS, LINES OR PIPES
275.0021 Air for Aqua Lung. The taxpayer purifies air by using a compressor to pump air through several processing steps, and then stores the purified air in storage tanks. The taxpayer then fills its customer's empty scuba tank with the purified air from its storage tank. The taxpayer is not providing a nontaxable service of merely compressing air, which is free to all, into the customer's scuba tank. Rather, it is selling tangible personal property, that is, air that it has captured and which it owns. The sale is subject to tax. 8/24/72. (Am. M98–3).