Indiana Sales Tax Applies to Non-Returnable Packaging Materials Used in Logistics Services

• Indiana Department of Revenue ruled that non-returnable wrapping materials used in packaging services are subject to Indiana sales tax.
• The taxpayer provides logistics and packaging services but does not transform customer products or create new marketable goods.
• Purchases of non-returnable packaging materials and equipment do not qualify for sales tax exemption under Indiana law.
• Machinery and equipment used in packaging services are also subject to sales and use tax.
• The exemption applies only to equipment directly used in producing new marketable goods, which does not include the taxpayer’s activities.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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