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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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P


440.0000 Property Used in Manufacturing—Regulation 1525

Annotation 440.2000

(b) Property Becoming Component Part of Finished Product

(2) Food, Beverages

440.2000 Ketlube Used in Manufacturing Candy. Ketlube, a product made from animal and vegetable fats, is purchased for use in manufacturing candy. It is applied to kettles to prevent the candy from sticking while cooking and to give the cooked candy a texture which facilitates shaping, cutting, and wrapping. Since most of the ketlube becomes incorporated in the finished candy and imparts desired characteristics thereto, it is considered to be purchased for resale and not for use as a manufacturing aid. 2/10/67.