Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
400.0000 PACKERS, LOADERS, AND SHIPPERS—Regulation 1630
400.0028 Container Materials. To establish to the satisfaction of the Board that container materials have been sold by a shipper to its customer prior to use, the shipper must make a separate charge to the customer for the packing materials. The materials must not be returned to the shipper for reuse. The contract must expressly provide that title to the packing materials will pass from the shipper to the customer prior to the time the packing materials are used for packing. The express agreement must be in a document executed prior to the packing operation. The shipper is required to retain documents concerning time of passage of title. The title provision must appear on a document executed prior to packing. If the title provision appears only on an invoice, the shipper will have failed to establish that title to the packing materials passed to the customer prior to use. 4/18/77.