Nontaxable Purchases

Some items that liquor stores and liquor distributors purchase are not taxable.

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.