Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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440.0000 PROPERTY USED IN MANUFACTURING—Regulation 1525

Annotation 440.1848

(a) MANUFACTURING AIDS

(7) Miscellaneous Specific Aids

440.1848 Chemicals Used in Manufacturing Cracking Catalysts. The following chemicals are used in the manufacturing of cracking catalysts for the petroleum industry.

Ammonia and sulfuric acid. Ammonia and sulfuric acid are purchased primarily for incorporation in the finished catalyst. Although only small percentages of these chemicals are in fact so incorporated, this is a necessary consequence of the manufacturing process. Under these circumstances, the ammonia and sulfuric acid are considered nontaxable.

Caustic soda. Caustic soda detracts from the stability and activity of cracking catalysts, is usually removed during the manufacturing, and is not intended to be incorporated in the finished catalysts. Thus, its purchase is subject to tax. 9/6/77.