Why? The Anna Drink Company sells soft drinks. Consider if Anna has to pay sales tax on the acquisition of containers: a. In State Brown (which does not have a specific container law) Anna sells 6 packs of its popular Annacoolada in throw away cans. This would generally be considered to be a retail purchase by the manufacturer although a minority of states might exempt the sale of throw away cans as purchases for resale. In all instances, courts have ruled the the purchase of reusable bottles, by the manufacturer, to be taxable retail sales. b. Also in State Brown, Anna sells, as part of a special promotion with a baseball team, the Annacoolada in a reusable mug. In this instance, you can make an even stronger argument that the retail consumer is acquiring the container, so the resale exemption looks a lot more rational. c. Same as A except that the sale occurs in State Black which has a special statute addressing the acquisition of containers. See Note C on p. 740, 10th ed.; p. 755, 11th ed. ). Many states have a specific statute addressing containers making them exempt from the sales tax as a sale for resale.
In the United States, sales tax laws vary by state, and the taxability of containers used for selling products can depend on whether the containers are considered part of the product being sold or if they are considered packaging materials. Here's how it might work in the scenarios you've described: a. In State Brown, without a specific container law, the purchase of throwaway cans by Anna Drink Company may be subject to sales tax as a retail purchase. However, if the state views these cans as being sold with the product (Annacoolada) and therefore part of a resale, then Anna might be exempt from paying sales tax on the cans. The fact that courts have ruled the purchase of reusable bottles to be taxable retail sales suggests that throwaway cans could be treated similarly unless there's a specific exemption. b. For the special promotion with the baseball team, if the Annacoolada is sold in a reusable mug, it could be argued that the mug is a part of the product being sold. If the consumer is deemed to be purchasing the mug along with the drink, then the resale exemption could apply, meaning Anna might not have to pay sales tax on the purchase of these mugs. c. In State Black, if there is a statute specifically exempting containers from sales tax as a sale for resale, then Anna would likely not have to pay sales tax on the purchase of containers, whether they are throwaway cans or reusable bottles/mugs. The specific statute would take precedence,
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