Sales/Use/Indirect:
Texas Comptroller of Public Accounts Clarifies Policy on Taxability of Wrapping and Packaging Supplies
Letter No. 202208017L, Tex. Comptroller of Public Accounts (8/8/22). Summarizing “agency policy regarding the taxability of wrapping and packaging supplies” upheld under Texas caselaw, the Texas Comptroller of Public Accounts (Comptroller) explains that Texas sellers of taxable services generally are not “manufacturers” ultimately selling tangible personal property when providing tangible personal property that is used by its customers to acquire the taxable service, and therefore, such service providers are not entitled to Texas’ manufacturing exemption for wrapping and packaging supplies. Additionally, the Comptroller explains that for a qualifying Texas manufacturer, only those items of wrapping and packaging that are transferred to the manufacturer’s customer qualify for exemption and that Title 34 Tex. Admin. Code section 3.314 (“Rule 3.314”) will be amended to clarify this policy. Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.