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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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C


195.0000 Containers and Labels—Regulation 1589

Annotation 195.0990

(a) In General—Nonreturnable Containers

195.0990 Sale of Containers Purchased from Recycler. A recycling company contracts with representatives to purchase, process, and store Polyethylene Terephthalate (PET) beverage containers as defined by the California Beverage Container Recycling and Litter Reduction Act. The representatives purchase PET containers from recyclers on behalf of the company, which holds title to the purchased containers. The company sells the PET bottles to an end user.

Since the bottles are sold by the company to end users and not to persons who place the contents in the container and sell the contents together with the container, the sales are subject to sales tax. 2/20/92.