Generally, containers and labels include boxes, crates, jars, bags, sacks, bottles, packing cases, and gummed tapes and tags. The term also may include associated items such as twine, plastic stuffing, wrapping materials and wire necessary to make the container functional.
Returnable containers are taxable.
If the retailer, for its convenience, collects sales tax on the deposit for a returnable container, the tax must be refunded upon return of the container. Pallets for warehouse use which are not sold with a product as a container are taxable. A pallet is not taxable only when merchandise being sold is firmly affixed to it and the pallet is not returnable to the seller. ABC Speaker Company manufactures stereo speakers and speaker parts. After the speakers are produced and tested, they are packed in a cardboard box, along with plastic stuffing, and placed in inventory for sale.