Labor to repair tangible personal property that qualifies for the manufacturing exemption is also exempt. For additional information, please request Rule 3.300 concerning Manufacturing, Custom Manufacturing, Fabricating, and Processing, and Sales Tax Bulletin 94-124. These documents are also available on the Comptroller's Web page. Manufacturers are also entitled to claim an exemption on certain purchases of wrapping and packaging supplies. Exempt items include bottle crowns, throwaway cartons and containers, and labels.
Tax is due on wooden cases and returnable containers.
For additional information, you may request a copy of Rule 3.314 concerning Wrapping and Packaging Supplies, or review it on the Comptroller's Web page. Bottlers that simply repackage the soft drinks or alcoholic beverages without making any physical or chemical change to the product are repackagers. Repackagers do not qualify for any manufacturing or wrapping and packaging exemptions. Vending Machines Vending machines used by a bottler to dispense drinks are taxable at the time of purchase. Bottlers selling or leasing vending machines to customers may purchase the vending machines tax free by issuing a resale certificate to their suppliers.