Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
440.0000 PROPERTY USED IN MANUFACTURING—Regulation 1525
(a) MANUFACTURING AIDS
(3) Matrices, Molds, Models
440.0260 Lace. A manufacturer of ceramics purchases lace for use as a framework or pattern for the porcelain and glaze from which figurines are made. During the firing process, the lace is reduced to gas (there may be a small ash residue). The lace does not perform any useful function except as a pattern for the formation of the porcelain lace during the firing process. The figurine is sold clothed in a gown of porcelain lace which results from the manufacturing process, and there is no trace of the cloth lace remaining as a component part. The manufacturer is purchasing the lace for use, and not for resale. 9/27/50.