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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 440.3540

(b) Property Becoming Component Part of Finished Product

(4) Miscellaneous Specific Components

440.3540 Toluene Sulfonic Acid and Butyl Phosphoric Acid Used in Wood Finishing. Resin coating materials are sold to furniture manufacturers for use as high-speed wood finishes. These materials are sold in two packages, a resin compound and a "catalyst." Since the active constituents of the "catalyst," toluene sulfonic acid and butyl phosphoric acid, become incorporated in the polymerized film coating, sales thereof for such purpose are exempt sales for resale. 12/23/64.