Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
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
440.2960 Grafting Rubber. Grafting rubber (thin strips of rubber tied around a tree seal treated graft) is considered as being used in the process of producing the finished product and is consumed in the process of grafting plants. It does not become a component of the plant, but rather serves a function of holding a graft together while it is bonding, after which the plant discards the rubber. The finished product is the full grafted, independently viable plant. The rubber is not purchased for resale and is, therefore, subject to tax when purchased by the grafter. 4/23/69.