Containers,

WRAPPING AND PACKING MATERIALS AND RELATED PRODUCTS. (1) Items actually accompanying the product sold or shipped, without which the delivery of the product is impracticable on account of the character of the contents, and for which there is no separate charge, are not subject to Sales or Use Tax. These items include such things as containers, packing materials, labels or name plate affixed to products manufactured, and printed matter containing only directions for use. (2) Sales of containers, wrapping and packing material and related products which actually accompany work done for customers, when the services are subject to the Sales or Use Tax, are exempt from the Sales or Use Tax. Sales of tangible personal property to persons who render services which are not subject to the Sales or Use Tax, are subject to the Sales or Use Tax. (3) Charges made by dealers in this State for “gift wrapping” are subject to the Sales or Use Tax. STATE SALES AND USE TAX RULES CHAPTER 1320-05-01