Below is a description of how retail sales or use tax applies to chemicals used to treat drinking water.
- Chemicals that are consumed in the process of treating drinking water, and do not remain in the water when it is delivered to the customer, are subject to sales tax or use tax. Example: ozone
- Chemicals that remain in the water after treatment, and are present in the water delivered to customers, can be purchased without paying sales tax or use tax. Examples: fluoride, chlorine
In order to claim the exemption, you can use a reseller permit. If you do not have a reseller permit, you can apply for one online.
If you have previously paid sales or use tax on qualifying water treatment chemicals, you may apply for a refund online.