Blow Torch Gas Qualifies for Tax Refund, Alabama Judge Rules

A defunct scrap yard is entitled to a reduced sales tax rate on natural gas it bought to power a blow torch used to cut metal down into marketable sizes and shapes, the Alabama Tax Tribunal ruled.

The Alabama Department of Revenue denied refund requests filed by SLJ Holdings Inc., formerly known as Jordan Scrap Inc., because it believed the yard used the gas to power a hand tool used to dismantle large structures—a service that doesn’t qualify for the reduced machine rate. But the company’s representative said the gases were used to cut down metal, which qualifies for the ...