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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 195.2076

(c) Labels

195.2076 Shipping Tag. A multiple part form is used by the seller to describe the contents, quantity, and unit of measure being shipped. It also has a "sold to" and "shipped to" text area where the seller inputs the customer's name and address. One copy of the completed form is folded with the "ship to" address showing, inserted into a clear plastic envelope, and attached on the outside of the container (nonreturnable) and used like a shipping label. Another copy is retained by the seller as its accounts payable records and a third copy is used to accompany customs documents if the shipment is being sent overseas.

When a printed item is both a label and a shipping tag describing the product and the seller and showing the name and address of the consignee, the seller is considered to be using the item more as a shipping tag than as a label. Also, the additional copies for accounts payable records and to accompany customs documents, neither of which are affixed to the nonreturnable container, are not labels. Accordingly, the purchases of this three part packing slip used in the manner described are not exempt from the sales or use tax. 3/12/96.