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
275.0030 Air and Water Through Vending Machines. A taxpayer is engaged in operating self-service gas stations. On the business premises, taxpayer has coin operated vending machines attached to an air compressor and water line. The air and water are not purified or filtered in any way nor are there storage tanks to hold water or air. The machines will dispense either air or water for approximately three and one-half minutes on the insertion of 25 cents.
The sale of the air and water through the coin operated vending machine is nontaxable. The sale of the water is within the exemption provided by section 6353. The sale of the air, in this factual situation, is incidental to the furnishing of the services of the air compressor. (See Annotation 275.0020.) 8/10/87. (Am. 2004–2).