ARSD § 64:09:01:06 — Exemption of raw materials and parts for manufacture of products to be sold at retail

64:09:01:06. Exemption of raw materials and parts for
manufacture of products to be sold at retail. Tangible personal property,
including containers which, by means of fabrication, compounding, or
manufacturing, become an integral or component part of other tangible personal
property intended to be sold ultimately at retail and which is, at the time of
the sale, subject to sales tax, is exempt from use tax when it is used to hold
property that is subject to sales tax. If containers are used to hold property
that is not subject to the sales tax or used by a service establishment in
performing a service of its business, the containers are considered used or
consumed by the operator of the business and not by the consumer; and in such
cases the tax applies.