Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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195.0000 CONTAINERS AND LABELS—Regulation 1589

Annotation 195.0707


195.0707 Packaging Material. A taxpayer sells the following packaging supplies to a customer who manufactures a product for sale via mail order:

  • Plastic Bags
  • Peanuts (Styrofoam)
  • Box
  • Carton
  • Sealing Tape
  • Packing List
  • Envelope
  • Strapping
  • "Fragile" and "This Side Up" Labels
  • Stretch Film

The sale of plastic bags, boxes, carton sealing tape, and stretch film to purchasers who place the contents in the containers and sell the contents together with the containers are exempt sales of nonreturnable containers. The sales of the styrofoam peanuts, strapping, "fragile" and "this side up" labels to become a part of nonreturnable containers are also exempt. However, packing list envelopes which are affixed to the outside of the box and the invoices put inside are not nonreturnable containers of the product sold. Thus, the sales of the packing list envelopes to customers in this state are for the customer's use, and the sales are subject to sales tax. 12/2/96.