Section 125-303-2 - Consumed or Destroyed Items1.Exempt items.Tangible personal property that has a normal physical life expectancy of less than one year is exempt if it falls within one of the following categories: A. Items that are integrated with and essential to the operation of exempt production machinery and equipment. Items under this category will normally include but not be limited to such items as abrasives, coolants, lubricants, filtering materials, etc.B. Items that come in contact with, or are added to, the raw product during production, but that are later extracted or dissipated and do not become a component part of the tangible personal property produced. Items under this category will normally include but not be limited to such items as catalysts, chemicals, solvents, liquids, etc.C. Items that come into contact with the products produced and that are an integral and essential part of production. Items under this category will normally include but not be limited to abrasives, polishing agents, stencil materials, tagging materials, etc.2.Taxable items. Tangible personal property that is consumed and destroyed is taxable if it falls within one of the following categories: A. Items consumed or destroyed prior to the commencement of the production process or after production has ended as provided in §1752(9-B) of the law and Section 1(1) of this rule.B. Items consumed or destroyed in the course of contact with machinery and equipment that is not "directly" in production as provided in §1752(2-A) of the law and Section 1(3) of this rule. Items under this category will normally include but not be limited to the following:
(1) Cleaning supplies, including floor sweeping compounds, soaps, etc., regardless of where used;(2) Steam used to heat buildings, including the production area;(3) Personal apparel used by employees, including aprons, gloves, hair nets, ear plugs, face shields or masks, etc.;(4) Light bulbs, flash lights and batteries, used for lighting;(5) Chemicals or supplies of any kind used in quality control and research laboratories; and(6) Supplies used in maintenance of production machinery and equipment, including abrasives, files, grinding oil, etc.18- 125 C.M.R. ch. 303, § 2