Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
440.0000 PROPERTY USED IN MANUFACTURING—Regulation 1525
(a) MANUFACTURING AIDS
(7) Miscellaneous Specific Aids
440.1595 Property Used in Manufacturing—Negatives, etc. The manufacture of printed circuit boards involves the creation and use of negatives of the engineering and design drawings which show the actual circuitry to be imprinted on the board, assembly drawings showing the various components to be mounted on the board, and schematic drawings to be used in servicing the finished product of which the board is a part. All of these items are manufacturing aids as they do not become part of the finished product even though their images or imprints may become part of the finished product. If they are purchased from a vendor the gross receipts from the sale are taxable and a resale card should not be given. Even though most of the value of such manufacturing aids may be represented by the cost of the skilled services of technicians, draftsmen, other specialists, and the use of expensive equipment, the true object of the contract is the acquisition of the tangible personal property produced by such services and equipment. 1/18/79.