Ezel / Tax Rulings / TX
TX 8710L0834A13 Sales and/or Use Tax (State,Local,MTA) 1987-10-07

Were throwaway vials taxable when sold empty to a business that filled them with antigens and distributed the contents and container together?

Short answer: No. Texas treated the throwaway vials as nonreturnable containers sold to a person who filled and transferred them with their contents.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is a taxpayer-specific October 1987 Texas Comptroller letter about nonreturnable vials used to distribute antigens. It says the opinion may change if the facts differ. Its Rule 3.314(b)(1) treatment depends on the vials being throwaway containers sold empty to a person who fills and sells the contents with the container; verify current law and actual transfers. STAR documents may no longer represent current policy even when not marked superseded. Identities are redacted. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The throwaway antigen vials were not taxable when sold empty to the requester's client. Rule 3.314(b)(1) exempted nonreturnable containers sold without contents to a person who places contents in them and sells the contents together with the containers.

The result depended on the phone-confirmed fact that the vials were nonreturnable.

What this means for you

The historical exemption followed the container's use in packaging a product for transfer, not merely its medical purpose. A returnable container or a vial not transferred with its contents could require a different analysis.

Common questions

Were the antigen vials taxable? No, under the stated facts.

Why? They were throwaway, nonreturnable containers sold empty to a business that filled and transferred them with the antigens.

Did the letter address returnable vials? No.

Citations and references

  • 34 Tex. Admin. Code Rule 3.314(b)(1) (nonreturnable containers)

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

October 7, 1987

Dear *:

Thank you for your letter regarding the taxability of vials in which
antigens
are placed and distributed to your client's patients.

During our telephone conversation you indicated that the vials were
nonreturnable containers.

The enclosed rule 3.314 subsection (b)(1) states that the sale of
non-returnable containers is not subject to tax when sold without the
contents to persons who place the contents in the container and sell the
contents together with the container. Throwaway vials are non-returnable
containers.

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

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Policy Division.

Sincerely,
Eddie C. Washington
Tax Policy Division

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