There are hereby specifically exempted from the tax levied by this chapter:
(A) Goods, wares, merchandise, and property purchased for the purpose of being used or consumed in the process of manufacturing, compounding, processing, assembling, or preparing for sale a finished article and such goods, wares, merchandise, or property become integral parts of the manufactured, compounded, processed, assembled, or prepared products or are consumed in the process of manufacturing, compounding, processing, assembling, or preparing products for resale. The term MANUFACTURING PLANTS shall mean those establishments primarily engaged in manufacturing or processing operations, and generally recognized as such;
(B) Ethyl alcohol when sold and used for the purpose of blending same with motor fuel on which motor fuel tax is levied by state law;
(C) Sale of machinery and equipment purchased and used by persons establishing new manufacturing plants in the state, and machinery and equipment purchased and used by persons in the operation of manufacturing plants already established in the state. This exemption shall not apply unless such machinery and equipment is incorporated into, and is directly used in, the process of manufacturing property subject to taxation under this chapter. The term MANUFACTURING PLANTS means those establishments primarily engaged in manufacturing or processing operations, and generally recognized as such;
(D) Sales of containers when sold to a person regularly engaged in the business of reselling empty or filled containers or when purchased for the purpose of packaging raw products of farm, garden, or orchard for resale to the consumer or processor. This exemption shall not apply to the sale of any containers used more than once and which are ordinarily know as returnable containers, except returnable soft drink bottles. Each transfer of title or possession of such returnable container in the state to any person who is not regularly engaged in the business of selling, reselling, or otherwise transferring empty or filled containers shall be taxable under this code. This exemption shall not apply to the sale of labels or other materials delivered along with items sold but which are not necessary or absolutely essential to the sale of the sold merchandise; and
(E) Sale of tangible personal property manufactured in the state when sold by the manufacturer to a person who transports it to another state for immediate and exclusive use in some other state.
(Prior Code, § 7-213)