Can a door manufacturer buy tax-free, as exempt wrapping/packaging supplies, the advertising brochures it includes with each manufactured door?

Plain-English summary

A door manufacturer asked about the tax treatment of advertising brochures it includes with each manufactured door — brochures describing additional options, such as a screen door add-on or other door types and styles.

The Comptroller ruled the brochures are taxable, whether they're bundled with the product at the point of sale or simply placed out in a retail store. The reasoning is straightforward: advertising brochures don't qualify as wrapping or packaging supplies under 34 TAC § 3.314, which is the rule manufacturers rely on to buy true packaging materials (boxes, wrap, etc.) tax-free as part of completing the manufacturing process. A brochure's function — marketing and informing the customer about options — isn't wrapping or packaging the product, so it doesn't ride on that exemption.

What this means for you

Manufacturers who include marketing materials with their products

Don't assume printed materials bundled with your product are automatically covered by the same wrapping/packaging exemption that applies to your actual packaging materials. Advertising brochures, option sheets, and similar marketing collateral are a separate category and are taxable.

Retailers displaying manufacturer-supplied brochures

The taxability outcome doesn't change based on whether the brochure ships with the product or sits in a retail display — either way, it's taxable, not exempt packaging.

Accountants and tax professionals

This is a useful narrow but clean example distinguishing "packaging" (genuinely wraps/contains/protects the product, exempt under Rule 3.314) from "advertising" (informs/promotes, not exempt) — the same distinction likely applies to option sheets, care instructions marketed as upsell material, and similar bundled marketing pieces across other manufacturing industries.

Common questions

Q: Are advertising brochures included with a manufactured product exempt as packaging materials?
A: No — they don't qualify as wrapping or packaging supplies under 34 TAC § 3.314, regardless of whether they're bundled with the product or displayed in a store.

Q: Does it matter whether the brochure is shipped with the product versus displayed separately in a retail store?
A: No — the letter states advertising brochures are taxable in either scenario.

Q: Can any manufacturer that includes marketing brochures with its products rely on this exact answer?
A: Not directly. This is a Texas STAR letter ruling binding on the Comptroller only for the taxpayer it addresses (34 Tex. Admin. Code Rules 3.1, 3.10); confirm your own materials and their function with a tax professional.

Citations and references

Rules:

• 34 Tex. Admin. Code § 3.314 (wrapping, packing, and packaging supplies)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200010807L

Original ruling text

October 17, 2000

Dear **:

Thank you for your recent letter concerning the taxability of an advertising
brochure that a door manufacturer includes with the manufactured doors.

The advertising brochure describes additional options available such as a
screen door for a particular door and other door options or types.

The advertising brochures are taxable when included with the product or placed
in a retail store.

The advertising brochures do not qualify as wrapping or packaging supplies as
defined under Rule 3.314 concerning wrapping, packing and packaging supplies.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

The referenced Comptroller rule is available at:
then click on the following:

1. Sales Tax under Quick Links;
2. State Sales Tax under Sales Tax Rules and Statutes;
3. scroll down to referenced rule and click on the rule.

You may call me toll free 1-800-531-5441, extension 3-4683, if you have any
questions or need more information. My email address is
. You may write to Tax Policy Division,
Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3825.

Sincerely,

Eddie C. Washington
Tax Policy Division