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 195.2115


195.2115 UPC on Label. A food packer purchases UPC labels and affixes them to food packages which are then resold to retailers who would use the information included in the UPC. When scanned by retailers, the UPC discloses the description of the product, identifies the distributor, lists the ingredients, and shows the weight of the contents. Since the information included in the UPC is for the benefit of the person purchasing the package that includes UPC labels, i.e., the retailer, the UPC qualifies as a label under Regulation 1589 and the sale of UPC to the food packer is not subject to tax. The sale of UPC to a retailer for the retailer's own benefit rather than the customer is subject to tax. 1/5/96; 4/13/98. (Am. M99–1).