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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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C


195.0000 Containers and Labels—Regulation 1589

Annotation 195.1909

(c) Labels

195.1909 Label vs. Shipping Tag. The distinction between a nontaxable label and a taxable shipping tag turns primarily on whether the purchaser will use the item for her own purposes or for the use of the purchaser's customer. Sales of blank labels can be made to other retailers for resale provided the purchaser does not use them as a price tag, shipping tag, or an advertising label. Sales of labels describing a product can also be made without tax such as "keep refrigerated," and "pesticide free." However, labels which merely contain the notation "Thank You" are taxable unless the purchaser will add to the label an instruction or description such as product weight or contents. 5/29/92.