17 NCAC 07B .3907          REUSABLE CONTAINERS

(a)  Deposits charged by vendors for reusable containers, other than those described in G.S. 105-164.13(47) and (48) are subject to sales or use tax when the purchasers of the property contained therein can, during the period the containers are in their possession, exercise such control over the containers as is ordinarily associated with ownership.  Such amounts are a part of the sales price even though designated as a deposit for the containers.

(b)  When the vendors retain title to such containers and the vendors retain the right to control the use which vendee makes of the containers, the containers are not considered to be a part of the sale of the property.  In such cases, amounts charged to the customers as security for the return of the containers are not subject to sales or use tax if such charges are shown separately from the sales price of the property on the customers' invoices.  If such amounts are not separately stated, the total charge is subject to the tax.


History Note:        Authority G.S. 105‑164.3; 105‑164.4; 105-164.13; 105‑262;

Eff. February 1, 1976;

Amended Eff. August 1, 2002; January 1, 1982; July 5, 1980.