Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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400.0000 PACKERS, LOADERS, AND SHIPPERS—Regulation 1630

Annotation 400.0266


400.0266 Freezing and Preserving Nonfood Product. A firm is engaged in the business of selling premixed, de-gassed, frozen epoxy (resin systems). The products must be quick frozen in mini tubes or polyethylene syringe type containers. The firm purchases dry ice. Twenty-five to thirty percent of the dry ice is used to quick freeze the product. The remainder of the dry ice is packed around the tubes and syringes to keep the product frozen during transportation to the customers.

Under these facts, the firm is the consumer of the dry ice whether it is used for quick freezing of the product or in the transportation process. In the processing, the dry ice does not become a component part of the resin system but rather it is used to freeze the product. The ice that is packed around the product for shipping is purchased primarily for the purpose of keeping the product frozen and not as a container. 4/24/87.