Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
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
440.2690 Coal Burned in Kilns to Make Cement. A taxpayer burns coal in kilns used to make cement. The process of burning coal produces "flyash," a residue which remains in the kiln after the coal is burned. It is mixed with the other ingredients used to make the cement. Flyash contains inorganic elements that are required for the production of cement, which elements would have to be purchased and added if the flyash was not present in the kiln. Based on this analysis, the portion of the coal for the primary purpose of incorporation of flyash into the finished product may be purchased for resale. If the coal is purchased tax-paid, a "tax-paid purchase resold deduction" may be taken or a claim for refund may be filed. 10/29/85.