Ezel / Tax Rulings / CA

Were hangers taxable when retailers displayed men's suits and coats on them and then transferred the hangers with the garments?

Short answer No. The hangers were containers, and display before sale did not create tax when they were sold with the suits and coats.
State
CA
Ruling
Annotation 195.0280
Tax type
Sales and Use Tax
Issued
1965-04-09
Issued by
California State Board of Equalization
Requested by
Redacted clothing retailer
Topics
display containers resale exemption sales tax
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1965. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1965
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This April 9, 1965 opinion concerns hangers for men's suits and coats that were used for display and transferred to consumers with the garments. The requester's April 2 letter is not reproduced in the official PDF, and the opinion supplies no further facts from it. Different reuse, return, separate-charge, or manufacturing facts may change the result. Current container and sales-tax rules control.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

California treated hangers for men's suits and coats as containers under section 6364. Retailers could use them to display garments before sale without tax if the hangers were then sold to consumers together with the suits or coats.

Common questions

Did in-store display disqualify the hangers?

No under the stated facts.

Citations and references

  • California Revenue and Taxation Code section 6364 — container exemption applied
  • Requester's April 2 letter — men's suit and coat hanger facts referenced; separate letter not reproduced in the official PDF

Source

Original ruling text

195.0280

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

April 9, 1965

--- --- ----- --- ----- --- --Gentlemen:
In reply to your letter of April 2, hangers for men’s suits and coats are containers within the meaning of Section 6364 of the Revenue and Taxation Code. Therefore, retailers, who purchase hangers for use in displaying men’s suits and coats prior to sale, are not subject to tax with respect to such hangers if they are sold to consumers together with the suits and coats. Very truly yours,

George A. Trigueros
Associate Tax Counsel

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