Information Release

ST 1979-02 - Mobile Concrete Mixers - May 21, 1979

We have been requested to determine the taxability or non-taxability of a new type combination truck and concrete mixer.

The new mobile truck-mixing equipment differs from other such equipment, previously ruled on, in that raw materials such as gravel, sand, cement and water are stored separately in bins and/or tanks while the unit is being transported to the customer's site, and the actual mixing takes place at the job site.

The new mobile unit may be self contained on a truck chassis or may be mounted on a trailer, complete with its own motor, which is moved to the job site by a truck tractor.

A review of the K & J Steele of Cincinnati, Inc. vs. Kosydar decision by the BTA shows clearly that the concrete mixers involved therein were processing units producing concrete for sale and that production was not completed until after the unit had arrived at the job site.

It is our position that the new unit's primary function is that of processing concrete at the job site, and if such unit is used primarily to produce concrete for sale such unit will be considered exempt from sales and use tax.

The trailer mounted unit would be exempt under the above conditions, however truck tractors used to move the trailer unit are subject to the tax. Transportation equipment such as trucks and bins or tanks used to haul to or to load raw materials into either type of unit, would be subject to taxation since they would not be involved directly in processing.

The sales tax due on the transfer of the processed concrete to the purchaser would be based on the total selling price including, but not limited to, all transportation costs involved in transferring any of the equipment, supplies or materials to the place where the concrete is discharged from the chute.

If you have any questions regarding this matter, you should call us at 1-888-405-4039.

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