Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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C

195.0000 CONTAINERS AND LABELS—Regulation 1589

Annotation 195.0867

(a) IN GENERAL—NONRETURNABLE CONTAINERS

195.0867 Plastic Boxes and Carriers—Photoplate Manufacturing. A photoplate manufacturer places in-process glass plates in boxes and carriers after the plates have been chromed. The plates are double spaced to avoid contaminants. The plates are inspected and substandard plates are eliminated. The remaining plates are then single-spaced, the surplus boxes and carriers are returned for cleaning and are later used to ship plates to the customers. The acceptable plates, which are still inside the boxes and carriers, are then further processed, inspected, placed in plastic bags, and shipped to customers.

The use of the nonreturnable containers (boxes and carriers) as temporary receptacles and as containers during the processing does not result in a use tax liability. The intervening use is not of sufficient consequences to deny the exemption set forth in section 6364(a). 8/27/84.