Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
295.0000 GROSS RECEIPTS
295.0260 Fungible Goods Credit. For the manufacturer of drill bits, "used" industrial diamonds are fungible with "new" diamonds of similar size and quality. Usable diamonds salvaged from customers' returned drill bits are credited to their accounts by carat weight and commingled with similar diamonds held by the bit manufacturer. Under these circumstances, the caret weight credit may be regarded as a return of the customers' diamonds, and excluded from gross receipts, when it is applied against the weight of diamonds in a subsequent sale of a newly manufactured bit to that customer. 5/29/69.