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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 440.2040

(b) Property Becoming Component Part of Finished Product

(2) Food, Beverages

440.2040 Molasses Used in Manufacturing of Yeast. In the process of the growth and the reproduction of yeast cells, the sugar in the molasses is the food on which the yeast cells live, grow and multiply. Everything which goes into a yeast cell comes from either the sugar or the water. Accordingly, it is our opinion that the molasses is purchased for the purpose of resale. 7/7/52.