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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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G


280.0000 Gifts, Marketing Aids, Premiums and Prizes— Regulation 1670

Annotation 280.1020


280.1020 Samples. A manufacturer of women's apparel which purchases garments of other manufacturers to use as style samples is liable for use tax on the cost of the samples, as well as for sales tax on gross receipts derived from their subsequent sale. The manufacturer's use of the garments in designing its own products is a use other than retention, demonstration or display while holding the garments for resale. 10/14/64.