Section R15-5-134. Sales of Containers, Bottles, and Labels

A.      The sale of containers and bottles is considered a sale for resale only when the purchaser is to transfer the containers with their contents in future sales.

B.       In cases where the containers are not subsequently sold as part of the merchandise, such sales are deemed to be taxable retail sales.

C.      The sale of labels to a purchaser who affixes them to nonre- turnable containers to be resold is considered to be a sale for resale and is not taxable.

D.      In cases where the containers are returnable and a new label is to be affixed, each time the container is refilled, the sale of the labels is also considered to be a sale for resale.

E.       The sale of analysis tags or other labels to be attached to con- tainers of feed and sold along as part of the article is a sale for resale.

F.       However, the sale of items such as price tags, shipping tags, and advertising matter used in connection with the subsequent sale is taxable as a retail sale.

Historical Note

Renumbered from R15-5-1829 and amended effective August 9, 1993 (Supp. 93-3).