17 NCAC 07B .3901. CONTAINERS: WRAPPING: PACKING AND SHIPPING MATERIALS

(a)  Sales to manufacturers, producers, wholesalers, and retailers of wrapping paper, labels, bags, cartons, and the other items specified in G.S. 105‑164.13(23)a. are not subject to tax if they are used for packaging, shipping, or delivering tangible personal property sold at wholesale or retail and they constitute a part of the sale of the property and are delivered with the property to the customer.  Except for the items described in Paragraph (b) of this Rule, this exemption does not apply to items that are used solely for delivery purposes and do not become a part of the sale of tangible personal property.

(b)  Sales of containers, such as barrels and drums, that are used to package tangible personal property for delivery to the customer and are returned to the owner for reuse are not subject to tax.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑164.13; 105‑262;

Eff. February 1, 1976;

Amended Eff. August 1, 1998; October 1, 1993; October 1, 1991; April 1, 1986; May 11, 1979.