The Arizona Supreme Court held that the silica sand, chemical binders, exothermic sleeves, mold cores, mold wash, and hot topping were exempt from use tax because they “were used directly in and were an integral part of a qualifying process.” According to statute, exempt processes include manufacturing, processing, fabricating, job printing, refining or metallurgical operations. Two tests have been adopted by case law to determine whether items are machinery or equipment “used directly” in qualifying operations: (1) the ultimate function and (2) the integrated rule. The items noted as exempt were considered items that were essential or necessary to the completion of the finished product because they were in close proximity to the process and directly touched the raw materials to help convert them into the finished product. Items including lime and cement were instead considered taxable because they seemed to have served an “ancillary purpose of pollution control” which was not integral to the processing. (Arizona Department of Revenue v Capitol Castings, Inc., Arizona Supreme Court, No CV-03-0250-PR, April 21, 2004)