Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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D

210.0000 DEMONSTRATION, DISPLAY AND USE OF PROPERTY HELD FOR RESALE—General—Regulation 1669

Annotation 210.0049

(a) GENERAL

210.0049 Bumpers Used to Make Templates. A company is engaged in the business of repairing and rechroming auto bumpers and parts on an exchange basis. In order to speed the replacement of a damaged bumper, the company maintains a stock of exchange bumpers. The customer will receive an exchange bumper of the same kind that is turned in. At the beginning of the model year, new bumpers are often purchased to have exchange stock ready. In order to repair dented bumpers to the proper dimensions before rechroming, dimension
templates can and may be made from new bumpers or from bumpers with damaged finishes which have the original dimensions. In some instances, templates are made from new bumpers purchased from the exchange stock. Templates are made by placing the bumper on a sheet of paper or masonite and tracing the outline in pencil. The tracing takes a matter of minutes. No damage or change to the bumper results from this process. The template is used to compare reformed bumpers with the original dimensions.

The making of a template is essentially a measuring process which is not inconsistent with the company's holding the items for resale and under these conditions is insignificant. No substantial use is made of the bumpers. No tax liability arises out of such limited use. 7/28/67.