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
440.0270 Markers. A clothing manufacturer provides a person with a cardboard pattern of a clothing design (hardcard). Using the hardcard, the person devises a pattern or "layout" for cutting material that will minimize waste. The "layout" is drawn or traced on heavy paper (marker) which is transferred back to the manufacturer. The "marker" is then used by the manufacturer to make a tissue copy (flimsy) of the pattern. The marker is reusable and can be used to make as many flimsies as necessary. The flimsy is placed directly on the material and used as a template to guide the cutting. The true object of the contract between the manufacturer and the person is the property acquired, i.e. the "marker." Therefore, the entire charge for fabricating the marker is subject to tax. 11/30/90.