In Utah, a graphite fiber manufacturer’s purchase of nitrogen was exempt from Utah sales and use tax.

Although the nitrogen was not used as a fuel to produce heat or energy, it was considered exempt because it was purchased for industrial rather than residential purposes. Without legislative intent to the contrary during the period at issue, a liberal statutory interpretation of the term “gas” in tax provisions could include nitrogen. (Hercules, Inc., Utah Court of Appeals, No. 20000105-CA, December 21,2000)

Posted on December 15, 2000