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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 440.2200

(b) Property Becoming Component Part of Finished Product

(2) Food, Beverages

440.2200 Sodium Bisulfite. Sodium bisulfite used on potatoes to preserve their whiteness is not a food product, and its sales to consumers, for example, by grocery stores is subject to tax. However, where it is purchased by restaurants for fixing peeled potatoes so as to retard discoloration, it may properly be purchased ex-tax for resale, since the compound becomes incorporated into the potatoes. 6/11/59; 12/20/60; 5/9/61.