Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
195.0000 CONTAINERS AND LABELS—Regulation 1589
195.1740 Attached to Goods Sold. The distinction between a taxable shipping tag and an exempt label turns primarily on the use by the vendor for his own purposes, rather than for the character of use or benefit of the customer. A shipping label does not describe the contents of the nonreturnable container nor relate to the product sold, whereas such cautionary labels as "fragile," "glass—handle with care," or " inflammable" primarily benefit the ultimate purchaser and are considered as resold prior to use by the vendor. If the label is a shipping label, primarily for the benefit of the vendor, it is not considered sold with the product but the vendor is considered to be making a taxable use of it. If the label is descriptive of the contents of the container to which it is attached, it is regarded as being purchased by the vendor for resale with the product and his purchase is exempt as being purchased for resale. 7/7/69.