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
275.0260 Water Withdrawn from Canals. Sales of water which is delivered to contractors by canals are exempt from tax within the meaning of section 6353, since canals and laterals may be considered as mains, lines, or pipes within the meaning of the statute. The withdrawal of the water from a designated location under a water service rate schedule by the contractor is considered a delivery. However, if the water is trucked to the contractor by the seller, the transaction is taxable. 8/5/64.