Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2017

Sales and Use Tax Annotations

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195.0000 CONTAINERS AND LABELS—Regulation 1589

Annotation 195.0307


195.0307 Computer Container. The contract of a company selling computers provides the following:

(1) purchase price of the equipment is F.O.B. at the company's place of business,

(2) charges for transportation, presumably from the company's place of business, are to be paid by the purchaser, and

(3) title to the equipment passes to the purchaser on the installation date.

The purchaser is free to dispose of the containers in which the company ships the computers. The company's employees install and test the equipment at the customer's location.

Assuming the company makes no use of containers except as nonreturnable containers in which to deliver equipment pursuant to the contract described above, with title to the container passing to the customer with the equipment, the sale of the containers to the company is exempt from sales tax. 4/3/89.