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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 440.3060

(b) Property Becoming Component Part of Finished Product

(4) Miscellaneous Specific Components

440.3060 Lacquer. Lacquer purchased for use as finish for tangible personal property is purchased for the purpose of incorporating it into the manufactured article to be sold and may therefore be purchased for resale.

On the other hand, lacquer thinner completely evaporates and does not remain as an ingredient of the finished product. Accordingly, lacquer thinner which is purchased for use in thinning lacquer, to be applied to articles which will be sold, is not regarded as resold with the finished articles. The tax, therefore, applies with respect to the sale of the lacquer thinner. 5/4/51.