Nonreturnable Containers (Rescinded January 30, 2011)

AUTHORITY: section 144.270, RSMo 1994. This rule was previously filed as rule no. 34. S.T. regulation 011-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed July 30, 2010, effective Jan. 30, 2011. Smith Beverage Co. of Columbia, v. Reiss, 568 SW2d 61 (Mo. banc 1978). Bottlers were not required to pay a use tax on reusable soft drink bottles purchased from outstate suppliers and transferred to retailers for sale to consumers, since these transactions fall within the purchase for resale exemption. King v. National Super Markets, Inc., 653 SW2d 220 (Mo. banc 1983). The purchase of paper bags by a supermarket was considered to be a purchase for resale because they are transferred to the supermarket’s customers for consideration, since customers pay an increased price in exchange for the quantity of bags required to bag their purchases. Since National was including the cost of the bags as part of the gross taxable sale, the purpose of the use tax would not be achieved by allowing its imposition in this case.