Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
195.0000 CONTAINERS AND LABELS—Regulation 1589
(a) IN GENERAL—NONRETURNABLE CONTAINERS
195.1340 Wrapping Paper Sold to Operator of Frozen Food Lockers. The sales tax applies to sales to operators of frozen food lockers who use the materials to wrap meat or other foods not sold by the operators to the customer, in the same manner that it applies with respect to the sale, for example, of wrapping paper to a laundry which uses the wrapping paper to wrap up material that has been laundered for delivery to the owners thereof. On the other hand, the tax does not apply to sales of containers and wrapping materials to operators who will place meat or other food products therein, selling the products together with the containers.
Assuming that an operator cannot segregate at the time of purchase the container material that will be used to wrap property belonging to the customer and to wrap property for sale to the customer, he may buy all of the container material ex tax for resale and return the tax to the state measured by the purchase price of that portion of the container material used other than to wrap products to be sold to the customer. If he buys all of the container material on a tax-paid basis, he may deduct on his tax returns the cost price of that container material used to wrap food to be sold to the customer. 7/5/50.