Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
315.0000 INSTALLING, REPAIRING, RECONDITIONING IN GENERAL—Regulation 1546
(a) IN GENERAL
315.0240 Pipe Coating—Well Stop Charges. A chemical formulation is injected into oil wells for the purpose of coating the metal surfaces of pumps, tubing, and sucker rods to protect against corrosion, scale and bacterial attack. The chemical is forced under pressure from a tank truck into the well, where the well pump distributes it. The performance of the injection services requires skilled technicians, and may or may not be performed by the supplier who furnishes the chemicals. The injection services are not required as a condition of the sale by the retailer of the chemicals and in all cases the well operator controls the quantity and formulation of the chemicals applied. Under these circumstances, the injection services represent nontaxable installation labor. The charges for the chemicals are subject to tax. 11/25/70.