Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
440.0000 PROPERTY USED IN MANUFACTURING—Regulation 1525
(a) MANUFACTURING AIDS
(2) Thinners, Solvents, Reducers, Carriers
440.0241 Thinning Solvent—Photoplate Manufacturing. Thinning solvent purchased to dilute a photoresist compound used in the manufacturing of photoplates used by integrated circuit manufacturers is virtually entirely dissipated during the baking process. Approximately two to ten percent of thinner remains on the photoplate. The photoresist compound purchased consists of from 60 to 80 percent thinner.
The thinning solvent, which is purchased separately, is added so that the compound will be spun on the glass plates in the proper thickness. While a minute quantity of thinner remains on the finished product, that is not the "principal purpose" for which the thinning solvent was purchased. Accordingly, the purchase of the thinner is taxable. 8/27/84.