Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
195.0000 CONTAINERS AND LABELS—Regulation 1589
(a) IN GENERAL—NONRETURNABLE CONTAINERS
195.0347 Deposits on Nonreturnable Containers. A firm engaged in business in a national park charges a five cent "deposit" on containers such as soda or beer cans. The "deposit" is required by the federal government to prevent littering in the national park. If the customer returns the container, the five cents are refunded but the container is not refilled. Rather, it is crushed and recycled.
The containers remain nonreturnable containers and, accordingly, the five cents are not a "deposit" within the meaning of Regulation 1589. The five cent fee is part of the gross receipts from the sale of the beverages. 12/6/82.
(Note: Opinion not related to redemption or recycling values pursuant to division 12.1, commencing with section 14500 of the Public Resources Code.)