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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
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395.0000 Occasional Sales—Sale of a Business—Business Reorganization—Regulation 1595
Annotation 395.0012
(a) In General
395.0012 Business Activity Not Requiring a Permit. A taxpayer is in the deburring business which involves polishing metal objects manufactured by various companies. This process is a nontaxable event because the manufacturer delivers the product to the taxpayer who deburrs the product and then returns it to the manufacturer for assembly and subsequent sale. The taxpayer holds a seller's permit to accommodate small companies who want to buy small quantities of materials of a kind used in the deburring process. The sales are taxable sales. Sales of these materials represents less than 1% of taxpayer gross receipts.
Based on the facts presented, the furniture and fixtures used in the deburring activity are not held or used in an activity requiring the holding of a seller's permit. Therefore, the sale of the furniture and fixtures is not subject to sales tax if they were used exclusively in the polishing activity and not also in the selling activity. 12/12/85.