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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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440.0000 Property Used in Manufacturing—Regulation 1525

Annotation 440.1960

(b) Property Becoming Component Part of Finished Product

(2) Food, Beverages

440.1960 Caustic Soda. Pretzel dough is dropped into a lye solution which causes a gelatination of this starch by the caustic soda; a film of dilute soda solution adheres to the surface of the pretzel and upon heating reacts and becomes part of the pretzel in the form of the glazed surface; as such the caustic soda is purchased by the manufacturer for resale and may be purchased ex-tax. 11/16/61.