Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
440.0000 PROPERTY USED IN MANUFACTURING—Regulation 1525
(b) PROPERTY BECOMING COMPONENT PART OF FINISHED PRODUCT
(1) In General
440.1853 Determining Factors. In determining whether an item was used in a manufacturing process or became part of a finished product, there are two factors to consider. First is whether the item is in fact physically present in the finished product. If so, the second factor is what is the function of the item in the finished product? If it primarily serves a beneficial purpose in the finished product, and it was put in with the intention that it remain, it may be purchased for resale, even though it may also have served a secondary purpose as a catalyst. 9/16/92.