Indiana DOR Clarifies Sales, Use Taxability of Taxpayer’s Packaging Equipment

The Indiana Department of Revenue (DOR) issued a revenue ruling in response to taxpayer’s inquiry whether the purchase of non-returnable packaging materials for packaging to customers is exempt from sales tax, and whether packaging equipment used to package or repackage products is exempt as manufacturing machinery equipment. DOR held that taxpayer is a fulfillment company that handles the logistics of storing, packaging and shipping products, not an industrial processor. Hence the non-returnable wrapping materials as well as any machinery, and equipment used in providing it assembly and packaging services are subject to sales and use tax. [In. Dep’t off Revenue, ...