Search this guide Print Page Print Guide Guide Menu Back to Sales Tax Fact Sheets and Industry Guides Liquor Stores and Liquor Distributors Industry Guide Sales Nontaxable Purchases Taxable Purchases and Use Tax Licensing Information Filing Returns and Record-Keeping Legal References and Resources field_block:node:guide:title Nontaxable Purchases field_block:node:guide:body Some items that liquor stores and liquor distributors purchase are not taxable. field_block:node:guide:field_paragraph 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 [+] Clothing is not taxable. Examples include: caps and hats sweatshirts t-shirts and jerseys uniforms For additional information, see Clothing.