Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
440.0000 PROPERTY USED IN MANUFACTURING—Regulation 1525
(a) MANUFACTURING AIDS
(7) Miscellaneous Specific Aids
440.1740 Steel Balls Used to Grind Sand. Forged steel balls are used in a ball mill to grind silica sand to a desired fineness. The sand becomes incorporated into a finished product which you sell. In the course of the grinding the balls wear out and all of the steel from the balls eventually becomes a part of the product.
The steel balls are purchased for the purpose of using them in manufacturing processes and not primarily for the purpose of incorporating iron into a finished product. Accordingly, the sale of the steel balls is a retail sale and subject to sales tax. 5/16/52.