Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
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
440.3673 Wine Making—Oak Chips and Innerstaves. Oak chips and oak innerstaves used by wine makers to impart unique flavors in wine are considered to be purchased for the purpose of incorporating flavor elements derived from oak into wine as it matures. Neither the tank innerstaves nor the chips perform another functional purpose other than to impart flavor in the wine. Thus, the oak innerstave and chips may properly be purchased for resale pursuant to Regulation 1525(b). 3/22/96.