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BTLG Table of Contents > Sales and Use Tax Annotations > D > 210.0000 Demonstration, Display and Use of Property Held for Resale > Annotation 210.0506

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D

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210.0000 Demonstration, Display and Use of Property Held for Resale—General—Regulation 1669

Annotation 210.0506

(a) General

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210.0506 Swatches. When material is purchased to be used as swatches and there is no intent on the part of the purchaser to make any resale of this material, the swatches are not for retention, demonstration, or display while holding them for sale and, therefore, the sale to the retailer-purchaser is subject to tax. However, when a retailer purchases swatches which he plans to eventually sell for use as pillow cases, slip covers, or hot pads, the use of these to demonstrate or display a selection of materials occurs while holding them for sale and is not subject to tax. The distinction between the two cases is that in the former the retailer has no definite, concrete plan to sell the materials, while in the latter there is such a plan. 2/7/61.