Indiana DOR Clarifies Sales, Use Tax Exemptions for Packaging Materials, Equipment

The Indiana Department of Revenue (DOR) issued a revenue ruling clarifying the tax exemptions for packaging materials and equipment used by a logistics subsidiary. The DOR ruled that non-returnable packaging materials used for shipping customer-owned products are not exempt from sales tax because the taxpayer does not meet the requirements under IC 6-2.5-5-9(d), and that the packaging equipment used for various services is not engaged in industrial processing and thus not exempt from sales tax. [Ind. Dep’t of Revenue, Revenue Ruling 2025-04-RST, 09/25/25]