.15 Containers.

A. The resale exclusion includes not only the purchase for resale of the particular products or their components but also the containers, cartons, bottles, pallets, packing, and their components sold with these products.

B. A vendor may claim the resale exclusion on the purchase of returnable containers, provided that the vendor uses them solely to deliver other property for sale. If the vendor makes any use of the containers for other purposes, the resale exclusion does not apply.

C. The resale exclusion does not apply to purchases of containers which will not be used to package tangible personal property for sale. For example, the tax applies to the purchase of materials used to package an item transferred in a nontaxable service transaction, such as the sale to a dry cleaner of boxes and plastic bags.

D. Except for sales to farmers, the claim for the resale exclusion on purchases of containers is made through the issuance of resale certificates. Sales of containers to farmers to transport products the farmer raises are expressly exempt and need not be supported with resale certificates.