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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 440.2960

(b) Property Becoming Component Part of Finished Product

(4) Miscellaneous Specific Components

440.2960 Grafting Rubber. Grafting rubber (thin strips of rubber tied around a tree seal treated graft) is considered as being used in the process of producing the finished product and is consumed in the process of grafting plants. It does not become a component of the plant, but rather serves a function of holding a graft together while it is bonding, after which the plant discards the rubber. The finished product is the full grafted, independently viable plant. The rubber is not purchased for resale and is, therefore, subject to tax when purchased by the grafter. 4/23/69.