Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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P

440.0000 PROPERTY USED IN MANUFACTURING—Regulation 1525

Annotation 440.3045

(b) PROPERTY BECOMING COMPONENT PART OF FINISHED PRODUCT

(4) Miscellaneous Specific Components

440.3045 Iron Fines. Iron fines are incorporated into Portland Cement clinker as part of a class of compounds known as "calcium alumino ferrites". These compounds comprise essential ingredients of the end product which is sold.

The iron fines "aid" in the production of the cement, in that a certain amount of iron must be present in the mixture, prior to the heating stage, to ultimately produce the desired amount of alumino ferrite compounds. As such, the iron fines are not considered manufacturing aids under Regulation 1525, since the iron is a necessary ingredient which imparts a desired quality to the end product.

Therefore, when the iron is purchased primarily for the purpose of incorporation as an essential ingredient in Portland Cement clinker, which is resold, the iron fines may be purchased for resale. 9/28/84.