Tennessee DOR Announces Sales Tax Exemption on Pallets, Packaging

The Tennessee Department of Revenue Dec. 1 announced information on a pallet and packaging sales and use tax exemption. Pallets used for packaging when accompanying products sold directly to consumers or products sold in sales for resale are not subject to sales tax. As long as a separate charge isn’t billed to the consumer, a pallet will be considered exempt packaging, regardless of whether the pallet is returned to the seller. However, pallets and shipping materials used exclusively for transport or only within warehouse or distribution facilities are subject to sales tax. Sellers who purchase pallets and other packaging materials ...