Rule 560-12-2-.25 - Containers and Packaging Materials(1)Purpose. This Rule explains the sales and use tax exemption in O.C.G.A. § 48-8-3(94)for materials used to package tangible personal property for shipment or sale. This Rule does not address the exemptions for packaging supplies used in manufacturing and agriculture.(2) Single-use Containers and Packaging Materials. Sales and use tax does not apply to containers and packaging materials used in a trade or business for packaging tangible personal property for shipment or sale if such items are used solely for packaging and are not purchased for reuse by the seller or shipper of the tangible personal property. Exempt items include but are not limited to cans, boxes, and bottles in which goods are contained; boxes in which goods are delivered to customers; materials used to make containers; wrapping paper, plastic, wire, foam, twine, bottle caps, excelsior insulating material, crates, grocery bags, take-out boxes, shipping labels, packing peanuts, and tape. Invoices, packing slips, labels, tags, and plates are exempt from sales and use tax if affixed to the product or affixed to or inserted into the product packaging.(3)Reusable Containers and Packaging Materials. Sales and use tax applies to containers and packaging materials purchased for reuse by the seller or shipper of tangible personal property, including containers and packaging materials that temporarily pass to the purchaser until they are returned to the seller or shipper for reuse or returned to a pool of substantially identical items for the seller's or shipper's reuse. Examples of such items include but are not limited to pallets, storage tanks, truck bodies, shopping carts and baskets, delivery crates, dispensers, measures, dishes, and beverage glasses.(4) Promotional Materials. Sales and use tax applies to advertising inserts, catalogs, and other similar promotional materials.(5)Trade or Business Use Only. The exemption in O.C.G.A. § 48-8-3(94)applies only to containers and packaging materials used in a trade or business. A purchaser must present a properly completed certificate of exemption in order to qualify for the exemption.Ga. Comp. R. & Regs. R. 560-12-2-.25
O.C.G.A. §§ 48-2-12, 48-8-2, 48-8-3.
Original Rule entitled "Containers" adopted. F. and eff. June 30, 1965.Amended: Title changed to "Containers and Packaging Materials." F. Feb. 10, 2014; eff. Mar. 2, 2014.