Section R865-19S-48 - Sales Tax Exemption For Coverings and Containers Pursuant to Utah Code Ann. Section 59-12-104A. Sales of containers, labels, bags, shipping cases, and casings are taxable when: 1. sold to the final user or consumer;2. sold to a manufacturer, processor, wholesaler, or retailer for use as a returnable container that is ordinarily returned to and reused by the manufacturer, processor, wholesaler, or retailer for storing or transporting their product; or3. sold for internal transportation or accounting control purposes.B. Returnable containers may include water bottles, carboys, drums, beer kegs for draft beer, dairy product containers, and gas cylinders.1. Labels used for accounting, pricing, or other control purposes are also subject to tax.C. For the purpose of this rule, soft drink bottles and similar containers that are ultimately destroyed or retained by the final user or consumer are not considered returnable and are exempt from the tax when purchased by the processor.D. When tangible personal property sold in containers, for example soft drinks, is assessed a deposit or other container charge, that charge is subject to the tax. Upon refund of this charge, the retailer may take credit on a sales tax return if the tax is refunded to the customer.Utah Admin. Code R865-19S-48