Section 372.370 - Property used in manufacturing1. 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.Nev. Admin. Code § 372.370
Tax Comm'n, Combined Sales and Use Tax Ruling No. 9, eff. 3-1-68