Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 30 - Bottles, Containers, and Labels (280-RICR-20-70-30)
Section 280-RICR-20-70-30.7 - Containers and Labels
Universal Citation: 280 RI Code of Rules 20 70 30.7
Current through September 18, 2024
A. Tax does not apply to sales of:
1. Nonreturnable containers
(including boxes, paper bags, and wrapping materials) when sold without the
contents to persons who place the contents in the container and sell the
contents with the container.
2.
Returnable containers when sold with the contents in connection with a retail
sale of contents, or when resold for refilling.
3. All containers when sold with the
contents, if the sale of the contents is exempt.
4. Tax applies to all other sales of
containers except sales for the purpose of resale to other sellers of
containers who purchase them for resale without the contents.
5. Deposits as defined herein are not
taxable.
6. The purchase of
returnable containers by a manufacturer or processor from a supplier is a
taxable transaction.
B. Labels
1. Tax does not apply to sales of
labels or nameplates if:
a. The purchaser
affixes them to property to be sold and sells them along with and as a part of
such property. (For example, sales of nameplates of manufacturers or producers
which are permanently affixed to each unit of products sold, such as
automobiles and machinery.)
b. The
purchaser affixes them to nonreturnable containers of property to be sold, or
to returnable containers of such property if a new label is affixed to the
container each time it is refilled. Examples are sales of labels to be affixed
to fruit boxes, cans, bottles and packing cases, to growers, packers, bottlers
and others who place the contents in the containers.
2. Tax applies to sales of such items as
price tags, shipping tags, and advertising matter used in connection with the
sale of property or enclosed with the property sold.
C. Gift Wrapping
1. Tax applies to the entire charge for "gift
wrapping" (i.e., furnishing the materials and labor required to wrap an item
for a customer so as to be suitable for use as a gift), whether or not the
person who does the gift wrapping is the seller of the contents, and whether or
not a separate charge is made for the gift wrapping. The person who does the
gift wrapping may purchase the materials free of tax for resale.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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