Are pallets used in packaging subject to sales tax when they accompany products that are sold in retail sales directly to consumers?

No, so long as a separate charge for the pallet is not billed to the consumer, a pallet accompanying the purchased product will be considered exempt packaging, regardless of how the product is attached to the pallet or if the pallet is returned to the seller following delivery of the product to the consumer.  For more information, see important notice 18-16.