Wholesale sales; nonretail transactions
Sec. 2. (a) A person is a retail merchant making a retail
transaction when he is making wholesale sales.
(b) For purposes of this section, a person is making wholesale
sales when he:
(1) sells tangible personal property, other than capital assets or
depreciable property, to a person who purchases the property
for the purpose of reselling it without changing its form;
(2) sells tangible personal property to a person who purchases
the property for direct consumption as a material in the direct
production of other tangible personal property produced by the
person in his business of manufacturing, processing, refining,
repairing, mining, agriculture, or horticulture;
(3) sells tangible personal property to a person who purchases
the property for incorporation as a material or integral part of
tangible personal property produced by the person in his
business of manufacturing, assembling, constructing, refining,
or processing;
(4) sells drugs, medical or dental preparations, or other similar
materials to a person who purchases the materials for direct
consumption in professional use by a physician, hospital,
embalmer, funeral director, or tonsorial parlor;
(5) sells tangible personal property to a person who purchases
the property for direct consumption in his business of industrial
cleaning; or
(6) sells tangible personal property to a person who purchases
the property for direct consumption in the person's business in
the direct rendering of public utility service.
(c) Notwithstanding any provision of this article, a person is not
making a retail transaction when he:
(1) acquires tangible personal property owned by another
person;
(2) provides industrial processing or servicing, including
enameling or plating, on the property; and
(3) transfers the property back to the owner to be sold by that
owner either in the same form or as a part of other tangible
personal property produced by that owner in his business of
manufacturing, assembling, constructing, refining, or
processing.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.246-1985,
SEC.9.
Last modified: May 28, 2006