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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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440.0000 Property Used in Manufacturing—Regulation 1525

Annotation 440.0260

(a) Manufacturing Aids

(3) Matrices, Molds, Models

440.0260 Lace. A manufacturer of ceramics purchases lace for use as a framework or pattern for the porcelain and glaze from which figurines are made. During the firing process, the lace is reduced to gas (there may be a small ash residue). The lace does not perform any useful function except as a pattern for the formation of the porcelain lace during the firing process. The figurine is sold clothed in a gown of porcelain lace which results from the manufacturing process, and there is no trace of the cloth lace remaining as a component part. The manufacturer is purchasing the lace for use, and not for resale. 9/27/50.