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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 195.0300

(a) In General—Nonreturnable Containers

195.0300 Coat Hangers. Men's suit hangers are containers within the meaning of section 6364. Retailers of men's suits who purchase hangers for resale by giving a resale certificate are not subject to tax because of incidental use in transporting the suits within the store and displaying them on racks prior to the sale of the suits with the hangers. Use of items as containers generally includes incidental uses of transportation and display, which are not "intermediate and complete use" found to have existed by the court in Safeway Stores v. State Board of Equalization, 148 Cal.App.2d 299. 9/3/64.