Were Remkleen WS and Metro CD degreasing agents resold components when manufacturers used them before painting or welding metal parts?

Short answer No. The agents cleaned metal but did not remain in or become part of the products sold, so manufacturers consumed them and the seller's California sales were taxable.

State

Ruling

Annotation 440.1055

Tax type

Sales and Use Tax

Issued

1972-05-19

Issued by

California State Board of Equalization

Requested by

A chemical seller asking about Remkleen WS and Metro CD degreasing agents sold to manufacturers

Topics

painting welding manufacturing aid sales tax

Source

View Original PDF

Apply this to your situation

This page answers the general question as of 1972. Ask about yours and see what current California tax law says, with citations.

Disclaimer: This is a California State Board of Equalization staff-counsel letter dated May 19, 1972, published by CDTFA as support for a sales and use tax annotation. It relies on the seller's description that the named degreasers did not remain in products after cleaning metal before painting or welding. Another taxpayer should not treat it as binding and should check current cleaning-agent, manufacturing-aid, component-part, seller, and sales-and-use-tax rules. This summary is informational only and is not legal or tax advice.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

A chemical seller supplied Remkleen WS and Metro CD to customers in different industries. The customers used the products to degrease metal parts before painting, welding, and similar work.

The sales were taxable. The manufacturers consumed the cleaning agents because they did not remain in or become incorporated into the products manufactured for sale.

The letter invited any customer claiming actual incorporation to submit its own facts and arguments, so the conclusion rests on the stated nonincorporation facts.

Source

Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/440-0000-all.html
Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/440-1055.pdf

Original ruling text

440.1055

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
1020 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 445-5550

May 19, 1972

M--- I--- C--- Company
Attention: Mrs. C. P. C--XXX East Xth Street
--- ---, CA XXXXX

Dear Mrs. C---:
SR -- XX-XXXXXX
Your letter of May 9, 1972 directed to Mr. John T. Quick concerning the taxability of Remkleen WS and Metro CD has been referred to us for direct reply. We understand from your letter and from discussing the matter with Mr. P--- R--- of your office that these items are used by various persons in different industries to degrease metal parts prior to painting, welding, etc. The degreasing agents themselves do not remain or become incorporated in the product that is being manufactured for sale. Under these circumstances, the manufacturer, your customer, is regarded as consuming these products and, accordingly, your California sales are subject to tax under Ruling 14. If a customer such as Q--- still insists that your product does become incorporated into the items which they ultimately sell, please feel free to have them submit their contentions or arguments directly to our office. Very truly yours,

Glenn L. Rigby
Staff Counsel
GLR:lb

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