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 195.1531


195.1531 Lease of Returnable Containers. A taxpayer leases returnable containers from a lessor who charges tax on the rentals. The taxpayer fills the containers with a product for resale which, when sold, is delivered in the containers. Since the lessor is charging tax on the lease receipts, it is clear that tax was not paid on the lessor's acquisition of the containers or that they are not being leased in the same form as acquired. Since the containers are "returnable containers," the lessor is correct in taxing the lease proceeds. 4/17/72.