Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 440.2505


(4) Miscellaneous Specific Components

440.2505 Additives to Wet Concrete. An item whose sale is a taxable retail sale of a manufacturing aid when sold to a manufacturer of concrete products or to a construction contractor may, in some cases, be sold for resale when sold to a seller of wet concrete. For example, a person cannot purchase an additive for resale when an additive is purchased to assist in the hardening of concrete and not for any benefits from that additive which remain in the hardened concrete to be sold. On the other hand, that person can purchase the additive for resale if it is to be added to concrete that will be sold in wet form. In that case, it is the purchaser of the wet concrete who purchases the additive for functional use. Examples of such additives follow.

Water Reducing Agents. Water reducing agents are used to reduce the quantity of mixing water required to produce concrete of a given consistency. It can reduce cracking and shrinking and improves water lightness, strength, and finished appearance of hardened concrete. These benefits appear to be based upon the water reducing agent's functional benefits during the hardening process and not by virtue of benefits arising from any water reducing agent remaining in the finished hardened concrete.

Superplasticizers. Superplasticizers are specialized water reducing agents. They appear to have substantially the same functions as water reducing agents, but more and better. Therefore, the same conclusion applicable to water reducing agents is applicable to superplasticizers.

Accelerators. Accelerators are often used to accelerate the hardening of concrete during cold weather. There are no indications that accelerators have a beneficial function in the hardened concrete. Thus, the same conclusion applicable to water reducing agents and superplasticizers applies.

Air-Entraining Agents. Air-entraining agents are used to stabilize bubbles of air during the mixing process so that the hardened cement contains air pockets. These air pockets increase resistance to damage from freezing and thawing. Air-entraining agents are similar to blowing agents used in the manufacture of flexible polyurethane foam. These blowing agents are used in the manufacturing process to produce a chemical reaction and not for beneficial purpose of remaining in the final product and are manufacturing aids as set forth in Annotation 440.0900. The same conclusion applicable to blowing agents is applicable to air-entraining agents. 10/8/91.