Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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P

440.0000 PROPERTY USED IN MANUFACTURING—Regulation 1525

Annotation 440.3120

(b) PROPERTY BECOMING COMPONENT PART OF FINISHED PRODUCT

(4) Miscellaneous Specific Components

440.3120 Lime and Limestone. The purchaser is subject to sales tax on purchases of burnt lime and limestone which are used as flux agents to remove impurities in molten metal and combine with the impurities to form slag which is sold. The burnt lime and limestone are purchased to produce a chemical or physical reaction in manufacturing a product. The incidental production of a by-product, slag, which may be resold does not change the basic use of the chemicals so as to constitute their purchase as purchases for resale. 8/19/69.