Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595

Annotation 395.0074.175

(a) IN GENERAL

395.0074.175 Service Enterprises Making Retail Sales. A firm was engaged in providing certain oil exploration services. In connection with such services, it pumped nitrogen gas into wells to force oil to the surface. The firm also held a seller's permit for the retail sale of nitrogen gas. The sales were incidental to the primary service activity.

The firm's primary business was the rendition of services. The sales of nitrogen were incidental and unrelated to the primary business, and did nothing to enhance the primary activity. While the sale of nitrogen storage tanks upon the sale of business are subject to tax, the sale of other assets is exempt as an occasional sale. 11/6/87.