N.D. Admin. Code 81-04.1-01-13
Receipts from the sale of containers, labels, cartons, packing cases, wrapping paper, wrapping twine, bags, bottles, shipping cases, and similar articles and receptacles sold to manufacturers, producers, wholesalers, retailers, or jobbers, which are used as containers of tangible personal property and are sold either for resale or at retail, are not subject to sales tax if the charge made for the property sold includes the container and title to the container passes to the purchaser with the merchandise sold.
Receipts from the sale of containers, labels, and cartons sold to those businesses rendering service are subject to the sales tax since these businesses are the users or consumers of such items, and sales to them are taxable.
Containers used for the purpose of delivering tangible personal property sold to customers, which may be returned to the seller, are not subject to sales tax when sold to the customer. The seller consumes or uses the containers in the seller's business, and the sale to the seller of such containers is subject to the tax. A deposit made by or required of the customer to secure the return of the container is not regarded as a retail sale, and it is not subject to the sales tax.
N.D. Admin Code 81-04.1-01-13
General Authority: NDCC 57-39.2-19
Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1, 57-39.2-03.2, 57-39.2-03.3, 57-39.2-04