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BTLG Table of Contents > Sales and Use Tax Annotations > P > 435.0000 Producing, Fabricating and Processing > Annotation 435.0130

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P

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435.0000 Producing, Fabricating and Processing Property Furnished by Consumers—General Rules—Regulation 1526

Annotation 435.0130

(a) Assembly, Disassembly and Reassembly

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435.0130 Iridium. The iridium metal is purchased from and fabricated into crucibles by an out-of-state company and is then shipped to another company's California plant where the crucibles are used as containers for molten sapphire in the plant's growth operation. Although not meant to become incorporated into the grown sapphire crystal, a minute portion, less than ½ of 1%, becomes incorporated into the grown sapphire crystal. Approximately 90% of the iridium metal is normally recovered and returned to the company's pool account with the out-of-state supplier.

This transaction may be handled on a "net exchange" basis. Tax is properly due on the charge made to the instate company for reclaiming iridium from crucibles returned to the out-of-state company. (See also Annotation 330.2627.) 10/20/70.