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
(4) Miscellaneous Specific Components
440.2640 Case Hardening Compounds. Charcoal used in the pack carburizing process, sodium cyanide used in the the cyaniding process, barium cyanide and sodium cyanide used in the liquid carburizing process and anhydrous ammonia used in the nitriding process are purchased for the purpose of incorporation into steel. That is, it appears that these compounds are purchased for their carbon or nitrogen content and that the carbon and nitrogen are physically incorporated into the steel.
Accordingly, the sale of the above-named case hardening compounds to steel manufacturers is an exempt sale for resale. 9/30/52.