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Last Updated: 7/14/2016

Nontaxable Purchases

Purchases for resale

You do not pay sales tax on items you purchase for resale. Give your vendor a completed Form ST3, Certificate of Exemption. Specify the resale exemption.

Liquor stores must purchase liquor from a licensed liquor distributor.

Cigarettes and tobacco products

If you purchase cigarettes or tobacco for resale, you must purchase them from a licensed distributor.

Packing materials

Materials used to enclose or protect products for distribution or are containers that are part of the sale are not taxable. Examples include:

  • boxes
  • bubble wrap
  • grocery bags
  • nonreturnable containers
  • packing peanuts
  • wrapping materials (paper, plastic wrap, wire)


Clothing is not taxable. Examples include:

  • caps and hats
  • sweatshirts
  • t-shirts and jerseys
  • uniforms

For additional information, see Fact Sheet 105, Clothing.

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