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 440.3480

(b) PROPERTY BECOMING COMPONENT PART OF FINISHED PRODUCT

(4) Miscellaneous Specific Components

440.3480 Sulfuric Acid Used in Production of Aluminum Fluoride. Taxpayer produced aluminum floride from aluminum oxide, supplied by its customer, and hydrofluoric acid, which taxpayer manufactured from its own sulfuric acid and calcium fluoride. In the chemical reaction between the sulfuric acid and calcium fluoride, calcium sulfate was also produced, which taxpayer sold to a third party.

Although the hydrogen ions in the sulfuric acid served as a carrier for the transfer of the fluorine ions to the aluminum fluoride, nevertheless the sulfuric acid is regarded as having been purchased for resale, inasmuch as the sulfate ions simultaneously become a component of calcium sulfate which taxpayer manufactured and sold. 11/10/64.