Idaho Admin. Code r. 35.01.02.084 - CONTAINERS RETURNABLE/NONRETURNABLE
Sections 63-3622, 63-3622E, Idaho Code
01.
Container. A container
encloses or will enclose tangible personal property which is sold at wholesale
or retail. A container may be comprised of one (1) or more components. Items
used as shipping supplies which do not enclose the product are not considered
to be containers. Example: Cartons of canned goods are placed on a pallet.
Shrink wrap is used to bind the cartons to the pallet. A shipping address label
is affixed to the shrink wrap. The container includes the cans in which the
goods are enclosed; the cartons in which the canned goods are placed; and the
shrink wrap and pallet which enclose the cartons. The address label is not part
of the container. (3-31-22)
02.
Containers Exempt from Tax. The following containers are exempt
from sales or use tax: (3-31-22)
a.
Nonreturnable containers purchased by a retailer or wholesaler who places the
contents in the container and sells the contents with the container at retail
or wholesale, including cans, barrels, boxes, cartons, grocery sacks,
disposable soft drink cups and lids, and other to-go fast food containers.
(3-31-22)
b. Returnable containers
when the container, along with the contents, is sold at retail if the fee for
the container is separately stated, including returnable beer kegs, returnable
barrels, and returnable pallets. (3-31-22)
c. Returnable containers when sold back to
retailers or manufacturers for refilling. (3-31-22)
d. Returnable or nonreturnable containers
when sold with contents that are exempted from the tax, regardless of whether
or not the container is separately billed, including containers for
prescription drugs, and oxygen or acetylene cylinders, when the use of the
gases qualifies for the production exemption. (3-31-22)
03.
Taxable Containers.
Containers subject to sales and use tax include containers used by persons who
are providing a service rather than selling a product, such as plastic clothing
bags purchased by dry cleaners. (3-31-22)
04.
Supplies. Shipping, selling,
or distribution supplies are not considered to be containers and are taxable
when purchased by the shipper, seller, or distributor, such as: (3-31-22)
a. Shipping pallets and lumber stickers when
not banded or shrink wrapped to the product to be sold, thereby not becoming a
part of the container. (3-31-22)
b.
Banding or binders used to secure goods to transportation equipment.
(3-31-22)
c. Price stickers and
address labels affixed to containers that do not provide any product
information such as weight, quantity, nutritional value, or other necessary
product description. See Rule
042 of these rules.
(3-31-22)
d. Example: Plywood is
wrapped with lumber wrap. The bundles are rested on pallets for shipping. In
this example the lumber wrap is the only container. As the bundles are not
enclosed onto the pallet, the pallet is not a container and is instead a
taxable shipping supply subject to the tax. (3-31-22)
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.