Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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420.0000 PHOTOGRAPHERS, PHOTOSTAT PRODUCERS, PHOTO FINISHERS AND X-RAY LABORATORIES—Regulation 1528

Annotation 420.1200

(c) X-RAY FILMS AND RADIOGRAPHS.

420.1200 X-Rays of Manufactured Property. Where a contract for manufactured property requires that the individual parts be x-rayed and that the radiographs be furnished to the customer along with the manufactured item as proof that the item meets specifications, the manufacturer may purchase x-ray film for resale. The examination of the radiograph by the manufacturer prior to shipment is not a taxable use by the manufacturer because the primary purpose of purchasing the film is to resell it to the customer. If either the radiograph or the part is defective, the film will be regarded as part of ordinary, unintended production losses in the same manner as the defective item. 10/5/86.