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Corrected Full Text: IRS May Add Polyether Polyols to Taxable Substances List

MAR. 14, 2000

65 F.R. 13832-13834

DATED MAR. 14, 2000
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    environmental taxes, toxic chemicals
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2000-7657 (3 original pages)
  • Tax Analysts Electronic Citation
    2000 TNT 52-22
Citations: 65 F.R. 13832-13834
TAX ON CERTAIN IMPORTED SUBSTANCES (POLYETHER POLYOLS); FILING OF PETITIONS

 

=============== SUMMARY ===============

 

The IRS has accepted, under Notice 89-61, 1989-1 C.B. 717, a petition to add nine polyether polyol substances to the list of taxable substances in section 4672(a)(3). Written comments and requests for a hearing, which are due by May 15, 2000, should be sent to: Internal Revenue Service, CC:DOM:CORP:R (Petition), Room 5226, PO Box 7604, Ben Franklin Station, Washington, DC 20044.

[Editor's note: The full text of this document which originally appeared in Tax Notes Today at 2000 TNT 51-28 Database 'Tax Notes Today 2000', View '(Number' contained incorrect text. The corrected full text is published at this cite. Tax Analysts regrets the error.]

 

=============== FULL TEXT ===============

 

DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE

[1] AGENCY: Internal Revenue Service (IRS), Treasury.

[2] ACTION: Notice.

[3] SUMMARY: This notice announces the acceptance, under Notice 89-61, of petitions requesting that nine polyether polyol substances be added to the list of taxable substances in section 4672(a)(3). Publication of this notice is in compliance with Notice 89-61. This is not a determination that the list of taxable substances should be modified.

[4] DATES: Submissions must be received by May 15, 2000. Any modification of the list of taxable substances based upon these petitions would be effective October 1, 1992.

[5] ADDRESSES: Send submissions to: CC:DOM:CORP:R (Petition), room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (Petition), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC. Alternatively, taxpayers may send submissions electronically to the IRS at Sharon.Y.Horn @m1.irscounsel.treas.gov.

[6] FOR FURTHER INFORMATION CONTACT: Ruth Hoffman, Office of Assistant Chief Counsel (Passthroughs and Special Industries), (202) 622-3130 (not a toll-free number).

[7] SUPPLEMENTARY INFORMATION: The petitions were received on November 21, 1991. The petitioner is Dow Chemical Company, a manufacturer and exporter of these substances. The following is a summary of the information contained in the petitions. The complete petitions are available in the Internal Revenue Service Freedom of Information Reading Room.

[8] The nine polyether polyol substances are liquids. They are produced predominantly by the base-catalyzed reaction of cyclic ethers, usually ethylene oxide and propylene oxide, with active hydrogen-containing compounds (initiators) such as water, glycols, polyols, and amines. The reaction is carried out by a discontinuous batch process at elevated temperatures and pressures and under an inert atmosphere. The particular substance produced depends upon the oxides, initiators, reaction conditions, and catalysts used. The stoichiometric amounts of oxide reacted on the initiator determine the chain lengths and thus the molecular weights. HTS number: 3907.20.00

Poly(propylene)glycol

[9] CAS number: 025322-69-4.

[10] Poly(propylene)glycol is derived from the taxable chemicals propylene, chlorine, and sodium hydroxide.

[11] The stoichiometric material consumption formula for this substance is: n+1(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) + H2O (water) --> C3H8 O2(C3H6 O)n (poly(propylene)glycol) + n+1(2 NaCl (sodium chloride) + H2O (water))

[12] According to the petition, taxable chemicals constitute at least 90 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $7.74 per ton. This is based upon a conversion factor for propylene of 0.781, a conversion factor for chlorine of 1.31, and a conversion factor for sodium hydroxide of 1.43.

Poly(propylene/ethylene)glycol

[13] CAS number: 053637-25-5.

[14] Poly(propylene/ethylene)glycol is derived from the taxable chemicals propylene, chlorine, sodium hydroxide, and ethylene.

[15] The stoichiometric material consumption formula for this substance is: n+1(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) + H2O (water) + m/ 2(2 C2H4 (ethylene) + O2 (oxygen)) --> C3H8O 2(C3H6 O)n(C2H4O)m (poly(propylene/ethylene)glycol) + n+1(2 NaCl (sodium chloride) + H2O (water))

[16] According to the petition, taxable chemicals constitute at least 90 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $7.16 per ton. This is based upon a conversion factor for propylene of 0.663, a conversion factor for chlorine of 1.11, a conversion factor for sodium hydroxide of 1.21, and a conversion factor for ethylene of 0.123.

Poly(propyleneoxy)glycerol

[17] CAS number: 025791-96-2.

[18] Poly(propyleneoxy)glycerol is derived from the taxable chemicals propylene, chlorine, and sodium hydroxide.

[19] The stoichiometric material consumption formula for this substance is: C3H8O3 (glycerine) + n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) --> C3H8O3(C3H6 O)n (poly(propyleneoxy)glycerol) + n(2 NaCl (sodium chloride) + H2O (water))

[20] According to the petition, taxable chemicals constitute at least 85 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $6.38 per ton. This is based upon a conversion factor for propylene of 0.645, a conversion factor for chlorine of 1.08, and a conversion factor for sodium hydroxide of 1.18.

Poly(ethyleneoxy)glycerol

[21] CAS number: 031694-55-0.

[22] Poly(ethyleneoxy)glycerol is derived from the taxable chemical ethylene.

[23] The stoichiometric material consumption formula for this substance is: C3H8O3 (glycerine) + m/2(2 C2H4 (ethylene) + O2 (oxygen)) --> C3H8O3(C2 H4 O)m (poly(ethyleneoxy)glycerol)

[24] According to the petition, taxable chemicals constitute more than 50 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $3.31 per ton. This is based upon a conversion factor for ethylene of 0.681.

Poly(propyleneoxy/ethyleneoxy)glycerol

[25] CAS number: 009082-00-2.

[26] Poly(propyleneoxy/ethyleneoxy)glycerol is derived from the taxable chemicals propylene, chlorine, sodium hydroxide, and ethylene.

[27] The stoichiometric material consumption formula for this substance is: C3H8O3 (glycerine) +n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) + m/2(2 C2H4 (ethylene) + O2 (oxygen)) --> C3H8O3(C3H6 O)n(C2H4O)m (poly(propyleneoxy/ethyleneoxy)glycerol) + n(2 NaCl (sodium chloride) + H2O (water))

[28] According to the petition, taxable chemicals constitute at least 85 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $7.20 per ton. This is based upon a conversion factor for propylene of 0.71, a conversion factor for chlorine of 1.05, a conversion factor for sodium hydroxide of 1.05, and a conversion factor for ethylene of 0.126.

Poly(propyleneoxy)sucrose

[29] CAS number: 009049-71-2.

[30] Poly(propyleneoxy)sucrose is derived from the taxable chemicals propylene, chlorine, and sodium hydroxide.

[31] The stoichiometric material consumption formula for this substance is: C12H22O11(sucrose) + n(C3H6 (propylene) +Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) > C12H22O 11(C3H6O)n (poly(propyleneoxy)sucrose) + n(2 NaCl (sodium chloride) + H2O (water))

[32] According to the petition, taxable chemicals constitute at least 65 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $4.18 per ton. This is based upon a conversion factor for propylene of 0.423, a conversion factor for chlorine of 0.707, and a conversion factor for sodium hydroxide of 0.773.

Poly(propyleneoxy/ethyleneoxy)sucrose

[33] CAS number: 026301-10-0.

[34] Poly(propyleneoxy/ethyleneoxy)sucrose is derived from the taxable chemicals propylene, chlorine, sodium hydroxide, and ethylene.

[35] The stoichiometric material consumption formula for this substance is: C12H22O11 (sucrose) + n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) --> m/2(2 C2H4 (ethylene) + O2 (oxygen)) --> C12H22O11(C3H6 O)n(C2H4O)m (poly(propyleneoxy/ethyleneoxy)sucrose) + n(2 NaCl (sodium chloride) + H2O (water))

[36] According to the petition, taxable chemicals constitute at least 75 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $6.11 per ton. This is based upon a conversion factor for propylene of 0.549, a conversion factor for chlorine of 0.918, a conversion factor for sodium hydroxide of 1.0, and a conversion factor for ethylene of 0.14.

Poly(propyleneoxy/ethyleneoxy)diamine

[37] CAS number: 031568-06-6.

[38] Poly(propyleneoxy/ethyleneoxy)diamine is derived from the taxable chemicals propylene, chlorine, and sodium hydroxide.

[39] The stoichiometric material consumption formula for this substance is: C4H12N2O (aminoethylethanolamine) + n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) --> C4H12N2O(C3H6 O)n (poly(propyleneoxy/ethyleneoxy)diamine) + n(2 NaCl (sodium chloride) + H2O (water))

[40] According to the petition, taxable chemicals constitute at least 60 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $4.92 per ton. This is based upon a conversion factor for propylene of 0.498, a conversion factor for chlorine of 0.833, and a conversion factor for sodium hydroxide of 0.91.

Poly(propyleneoxy/ethyleneoxy)benzenediamine

[41] CAS number: 067800-94-6.

[42] Poly(propyleneoxy/ethyleneoxy)benzenediamine is derived from the taxable chemicals propylene, chlorine, sodium hydroxide, and ethylene.

[43] The stoichiometric material consumption formula for this substance is: C7H10N2 (ortho- toluenediamine) + n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) + m/2(2 C2H4 (ethylene) + O2 (oxygen)) --> C7H10N2(C3H 6O)n(C2H4O)m (poly(propyleneoxy/ethyleneoxy)benzenediamine) + n(2 NaCl (sodium chloride) + H2O (water))

[44] According to the petition, taxable chemicals constitute at least 60 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $5.25 per ton. This is based upon a conversion factor for propylene of 0.491, a conversion factor for chlorine of 0.821, a conversion factor for sodium hydroxide of 0.897, and a conversion factor for ethylene of 0.081.

Comments and Requests for a Public Hearing

[45] Before a determination is made, consideration will be given to any written and electronic comments that are submitted timely to the IRS. All comments will be available for public inspection and copying. A public hearing may be scheduled if requested in writing by a person that timely submits written or electronic comments. If a public hearing is scheduled, notice of the date, time, and place for the hearing will be published in the Federal Register.

Dale D. Goode,

 

Federal Register Liaison Officer,

 

Assistant Chief Counsel

 

(Corporate)
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    environmental taxes, toxic chemicals
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2000-7657 (3 original pages)
  • Tax Analysts Electronic Citation
    2000 TNT 52-22
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