S.C. Code Regs. 117-312.1 — Containers and Packaging Materials, Sales of to Licensed Retailers

Licensed retailers purchase free of sales or use taxes wrapping paper, wrapping twine, paper bags
and containers for use incident to the delivery of tangible personal property sold by them. They also
purchase tax-free materials used in packaging personal property sold by them.
The list below, while illustrative of items falling within the exemption or exclusion, is not exhaustive:
Souffle cups, butter chips, paper cups, paper plates, boxes and crates and glazed tissue used to
package articles of food.
It will be seen that items such as straws, napkins, wooden or paper spoons and forks do not meet the
requirements outlined above and, hence, must bear the tax. Such items are rather in the nature of
supplies used or consumed by the retailer in the operation of his or its business.