Ezel / Tax Rulings / TX
TX 9109L1136G11 Sales and/or Use Tax (State,Local,MTA) 1991-09-26

Could a Texas meat processor buy containers, liners, bags, strapping, vacuum packaging, and tape tax free for frozen meat it processed for sale?

Short answer: Yes. The processor could buy the listed packaging tax free for meat products it processed for sale by giving its supplier an exemption certificate.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1991
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 an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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 Comptroller said a company that slaughtered and processed livestock could continue buying specified packaging for its frozen meat products tax free.

The approved list was corrugated containers, poly liners and bags, strapping material, combo containers, vacuum bags and pouches, and filament tape. The exemption applied when packaging meat products the company processed for sale, and the company documented it by giving the supplier an exemption certificate.

What this means for you

The ruling ties the exemption to packaging the processor's own products for sale. It does not provide a blanket exemption for every supply used by a slaughterhouse or packing plant.

Common questions

Which items did the letter approve? Corrugated containers, poly liners and bags, strapping, combo containers, vacuum bags and pouches, and filament tape.

What use qualified? Packaging frozen meat products processed for sale.

How did the processor claim the exemption? By issuing an exemption certificate to the packaging supplier.

Citations and references

  • The letter does not identify a numbered statute or administrative rule.

Source

Original ruling text

September 26, 1991

Dear ****:

Thank you for your recent letter requesting clarification of the Tax
Code as it relates to wrapping and packaging supplies used by your
business.

You stated in your letter that your company slaughters and processes
livestock and use the packaging materials on your frozen meat.

You may continue to purchase the following items tax free when packaging
your meat products that you have processed for sale; corrugated
containers, poly liners and bags, strapping material, combo containers,
vacuum bags and pouches, and filament tape. You may issue your packaging
material supplier an exemption certificate in lieu of tax.

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, you may call me
toll free at 1-800-252-5555, extension 3-4633. The regular number is
512/463-4633.

Sincerely,

Wanda Hutcheson
Tax Administration Division

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