Is packaging a distinct and identifiable product?

No. Packaging that accompanies the retail sale of the products is considered incidental and immaterial and are not distinct and identifiable products. Packaging includes, but is not limited to, containers, boxes, sacks, bags, bottles, wrapping, labels, tags, instruction guides, grocery sacks, shoeboxes, dry cleaning garment bags and express delivery envelopes and boxes.

Example: Purchased groceries are packed in reusable cloth bags. The cloth bags do not make this a bundled transaction on which sales tax is owed.