Materials, including grease and other petroleum products, purchased by manufacturers or compounders for use as a rust preventative or a protective coating for metal products while in storage or in shipment are exempt from sales or use tax when they remain on the final product manufactured or compounded for sale.

Author: Dan DeVaughn

Statutory Authority: Code of Ala. 1975, §40-2A-7(a)(5),40-23-31, 40-23-83, 40-23-1(a)(9)b, 40-23-60(4)b.

History: Amended: Filed December 23, 1998; effective January 27, 1998.