Yes, packaging materials, including pallets, containers, labels, sacks, bags, or bottles, used for packaging products that will accompany the products when sold in a retail sale or sale for resale are exempt from sales and use tax. The dealer should present a completed Streamlined Certificate of Exemption to its supplier to purchase the packaging materials exempt from sales and use tax. On line 4 of the exemption certificate, the purchaser should select its type of business (e.g., retail trade, manufacturing or wholesale trade). On line 5 of the exemption certificate, the purchaser should select box L “other” and include the explanation “packaging used incidental to the sale of products.” For more information, see important notice 18-16.
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