ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-2-.46. Manufacturer's Use of Patterns.
(1) Patterns purchased by a manufacturer for use as a part or attachment
to a machine used in manufacturing tangible personal property are subject
to the sales and/or use tax at the machine rate of 1 1/2%.
(2) Pattern materials purchased by a manufacturer for use in making
patterns that will become a part or attachment for a machine used in manufacturing
tangible personal property are subject to the sales and/or use tax at the
machine rate of 1 1/2%.
(3) The patterns or materials used in making patterns are taxable to
the manufacturer at the time of purchase even though the patterns may pass
to the manufacturer's customer after use by the manufacturer in making
castings. (Section 40- 23-2(3)) (Adopted October 29, 1976, readopted through
APA effective October 1, 1982)
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