A company that provided industrial processing services to customers but was not a retail merchant was liable for Indiana use tax on purchases of nonreturnable packaging materials that it used to transfer property back to its customers. There is an exemption for sales of packaging materials to retail merchants that use the materials as nonreturnable packaging for selling contents that the retail merchants add to the packaging. However, effective July 1, 2012, the exemption was amended to include sales of wrapping material and empty containers that are used as nonreturnable packages for certain property that is owned by another person and is processed or serviced for that owner. As a result, effective July 1, 2012, the company’s purchase of such packaging materials is exempt.(Letter of Findings No. 04-20130125, Indiana Department of Revenue, April 28, 2013, received September 3, 2013)