Ga. Comp. R. & Regs. R. 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.
Notes
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