Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 440.0700


(6) Food and Beverage Processing

440.0700 Soda Ash, Borax, Fungicides. All of these products are used by packing companies in the preparation of fruits and vegetables for sale:

Soda ash or borax which is sold to fruit packing companies is not purchased for the purpose of physically incorporating them into the manufactured article to be sold. Soda ash is added at the packing house to act as a cleansing agent which cleanses the fruit of impurities found on the fruit at the packing house, not being added for the purpose of incorporation.

Borax is used primarily as a fungicide to destroy fungus spores which have accumulated on the fruit prior to its arrival at the packing house. While some borax remains on the fruit to protect it after its departure from the packing house, most of the borax performs the function of removing existing spores and during the process goes off into a bath rather than permanently becoming a part of the fruit . . . The sale of borax to the packing house constitutes a taxable retail sale. 9/26/52.