Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
195.0000 CONTAINERS AND LABELS—Regulation 1589
(b) RETURNABLE CONTAINERS
195.1400 Beer Kegs—Filling as First Use. A foreign manufacturer of beer fills kegs with beer at its overseas brewery, sells the filled kegs to an importer who sells them to a distributor who resells the kegs of beer to customers in this state. When the kegs are empty, they are returned to the brewery for refilling. Inasmuch as the kegs are returnable containers and the filling of such containers constitutes the first use thereof, and this use does not occur in this state, the containers are not subject to the California use tax, notwithstanding the subsequent storage or use of the containers in this state. 8/10/67.