When a vendor sells tangible personal property in returnable containers without a charge being made for the use of the containers for a specified time but, at the expiration of the specified time, the containers enter a demurrage period and a penalty charge is made as an inducement for the return of the containers, the charges are incidental to the sale of the property and are not subject to the tax.  If a container is used by the owner of the container or another person to enclose tangible personal property for delivery to a purchaser of the property and is required to be returned to its owner for reuse, it is exempt from tax in accordance with G.S. 105-164.13(23)b.


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

Eff. February 1, 1976;

Amended Eff. August 1, 1998.