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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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R


475.0000 Resale Certificates—Regulation 1668

Annotation 475.0168


475.0168 Property Purchased for Resale. A sale is for resale only if the tangible personal property is purchased for the purpose of resale in the regular course of business without prior use. Property which, as a result of the nature of its use, incidentally becomes a component of another article which is resold should not be purchased for resale. For example, portions of certain chemicals used in the film developing process may adhere to the developed negative or print because the action of the wash or rinse is less than perfect. These chemicals do not become items purchased for resale simply because, after their intended use, some portion remains with the finished product. 1/31/72.