Tax Applies to Metallurgical Coke in Illinois

Monday, January 7th, 2019

 
 
Metallurgical coke in a steel production plant.
Share
Link
Illinois
Manufacturing

Illinois recently ruled that use tax was due on purchases of metallurgical coke. The taxpayer was a business that recycled electric arc furnace dust (EAF Dust) generated by steel producers. The taxpayer purchased metallurgical coke and combined it with the EAF Dust to create pellets which were then super-heated in a kiln. The whole process was done to create crude zinc oxide and iron oxide materials that were then sold to third parties.

The ruling determined that that the use of metallurgical coke for this process was taxable because it did not meet the requirements of the manufacturing exemption. To qualify for the exemption, the chemicals used to produce crude zinc oxide must have caused a "direct and immediate change" on the product being manufactured for sale. Because the metallurgical coke did not react directly with either the zinc oxide or the iron oxide, its use did not qualify for the manufacturing exemption.

https://www.ttrus.com/Tax-Applies-to-Metallurgical-Coke-in-Illinois


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Data Survey Services Not Taxable in South Carolina

Monday, June 24th, 2019 -The South Carolina Department of Revenue recently ruled that business data survey services were non-taxable pr...

Senior Center Cafeterias are Taxable in Missouri

Friday, June 21st, 2019 -Missouri's Director of Revenue recently issued a letter ruling taxing the sale of cafeteria food by a 501(c)(3...

Hot-Air Balloon Rides in Missouri are Taxable When...

Wednesday, June 19th, 2019 -Missouri recently released a letter ruling addressing the taxation of hot-air balloon rides. The taxpayer was ...

Nevada Exempts Certain Medical Equipment

Monday, June 17th, 2019 -Effective July 1, 2019, Nevada will exempt durable medical equipment, oxygen delivery equipment, and mobility ...

Participatory Sports are Taxable in New York

Friday, June 14th, 2019 -The New York Division of Tax Appeals recently denied a refund claim made by an instructor-led indoor spin clas...

Marketplace Facilitators to Collect Tax in Vermont

Thursday, June 13th, 2019 -Vermont recently passed a bill requiring marketplace facilitators to collect and remit sales tax on retail sal...