Nev. Admin. Code § 372.370 — 372.370

NAC 372.370    Property used in manufacturing. ( NRS
360.090 , 372.725 )
1.  The tax applies to the sale of tangible
personal property to persons who purchase it for the purpose of use in
manufacturing, producing or processing tangible personal property and not for
the purpose of physically incorporating it into the manufactured article to be
sold. An example is a chemical used as a catalyst or otherwise to produce a
chemical or physical reaction such as the production of heat or the removal of
impurities.
2.  The tax does not apply to sales of
tangible personal property to persons who purchase it for the purpose of
incorporating it into the manufactured article to be sold. An example is a raw
material which becomes part of the manufactured article.
3.  When a manufacturer purchases the
materials to fabricate or purchases complete dies, patterns, jigs, tooling,
photo engravings or other manufacturing aids for the account of a customer who
acquires title upon delivery, or upon the completion of the fabrication, the
manufacturer will be regarded as having purchased the property either as an
agent of or for resale to the customer. An example is when, pursuant to the
purchase order of a customer, a manufacturer obtains a particular pattern, die
or tool which is required to manufacture the goods desired by the customer and
identifies the special tool separately from the billing for the goods and
either delivers it to the customer or holds it as bailee for the customer, it
will be presumed that the manufacturer acquired the property as an agent of the
customer or for immediate resale to him or her.
4.  The tax applies either to the sale to the
manufacturer as an agent of his or her customer or to the sale by the
manufacturer to the customer.
5.  In determining whether the manufacturer
purchases the property as an agent of or for resale to his or her customer, the
terms of the contract with the customer, the custom of usage of the trade and
any other pertinent factors will be considered.
[Tax Comm’n, Combined Sales and Use Tax Ruling No. 9,
eff. 3-1-68]