Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
275.0000 GAS, ELECTRICITY AND WATER
(a) DELIVERY THROUGH MAINS, LINES OR PIPES
275.0085 Butane Produced During Refining Process. During the refining process, a taxpayer produces butane and propane from crude oil which it has purchased. Some of the butane and propane is transported back inside the refinery through pipes for use as fuel in the refining process.
The mere fact that the butane and propane is transported back in house through pipes does not qualify the gasses for exemption. The taxpayer is not delivering the gas to a consumer as required by section 6353. Also, the crude oil which petitioner purchased is a liquid not a gas. 5/6/93.