Exemptions from tax — Manufacturing exemption — Specific businesses — Automobile parts rebuilders, tire retreaders

# (a)

# (1)

Machinery and equipment purchased and used by persons rebuilding or remanufacturing used parts for automobiles, trucks, and other mobile equipment powered by electrical or internal combustion engines or motors are exempt from the tax provided that the rebuilt or remanufactured parts or retreaded tires are not sold directly to the consumer but are sold for resale.

# (2)

In all events, the machinery and equipment purchased and used by automobile parts rebuilders and tire retreaders must satisfy the requirements of 26 CAR § 30-1136.

# (b)

# (1)

Machinery and equipment purchased and used by persons retreading tires for automobiles, trucks, and other mobile equipment powered by electrical or internal combustion engines or motors are exempt from the tax regardless of whether the retreaded tires are sold for subsequent resale.

# (2)

In all events, the machinery and equipment purchased and used by tire retreaders must satisfy the requirements of 26 CAR § 30-1136.