ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.94. Materials Used in Plating.
(1) Materials purchased by a person, firm, or corporation for use in
further processing or manufacturing tangible personal property not owned
by the person, firm, or corporation but owned by a manufacturer or a compounder
are exempt from the sales and/or use tax when the tangible personal property
is to be ultimately sold at retail.
(2) The materials used in plating tangible personal property not belonging
to the plating company are subject to the sales and/or use tax when the
plating company customers used the product which was plated for the customer
and there was no retail sale of the product. The materials used in this
category are not purchased by or used by the manufacturer or compounder
who manufactures or compounds a product for sale; therefore, the purchase
of the materials does not fall within the meaning of the term "wholesale"
as found in Section 40-23-1(a)(9), Code of Alabama 1975. (Adopted July
2, 1975, amended June 12, 1978, readopted through APA effective October
1, 1982)
Numeric Index