Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
435.0000 PRODUCING, FABRICATING AND PROCESSING PROPERTY FURNISHED BY CONSUMERS—GENERAL RULES—Regulation 1526
(c) MISCELLANEOUS OPERATIONS
435.1363 Refining Crude Oil. An airline purchases crude oil and contracts with a refinery to process the crude oil into aircraft fuel and other products. Because the aircraft fuel will be consumed by the airline, charges for processing the aircraft fuel are subject to tax. Charges for processing the other products are not subject to tax because the products will be resold by the airline rather than consumed. 7/17/85.