Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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C

195.0000 CONTAINERS AND LABELS—Regulation 1589

Annotation 195.0155

(a) IN GENERAL—NONRETURNABLE CONTAINERS

195.0155 California Redemption Value (CRV) Fee. The Beverage Container Recycling and Litter Reduction Act places a CRV fee on the beverage distributor on all beverage containers sold or offered for sale in this state by the distributor. This fee is not imposed on the sale of tangible personal property to the beverage distributor; rather it is imposed on the beverage distributor upon the transfer of the container to a dealer or consumer. Therefore, the CRV is not included in the "sales price" of tangible personal property sold to the distributor. As such, the CRV is not a component of the "cost" upon which the use tax is computed to be due for such purchases should the distributor self-consume the tangible personal property.

Once the CRV is imposed, whether by sale, donation or other transfer of the tangible personal property from the beverage distributor to a third party, the CRV is thereafter included in the "sales price" of the property. Therefore the CRV becomes a component of the cost upon which the use tax is computed when the property is self-consumed by, or transferred to, the third party purchaser. 7/7/03. (2004–1).