Did separately stating a nonreturnable container charge remove it from tax when bare-root roses were sold in the container?

Short answer No. The entire container-and-contents charge followed the tax status of the roses: taxable contents made all of it taxable, while exempt contents made none taxable.

State

Ruling

Annotation 195.1000

Tax type

Sales and Use Tax

Issued

1970-05-25

Issued by

California State Board of Equalization

Requested by

Redacted public accountants asking about bare-root roses

Topics

nonreturnable containers separately stated charges resale exemption sales tax

Source

View Original PDF

Apply this to your situation

This page answers the general question as of 1970. Ask about yours and see what current California tax law says, with citations.

Disclaimer: The official supporting letter is dated May 25, 1970; the annotation page displays March 19, 1952, a date not printed in this source. This page uses the source document's date. The January 30 request is summarized but not separately reproduced, its year is not stated, and the described enclosures of historical Rulings 48 and 49 are not included in the official PDF. Current plant-sale, resale, 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 said bare-root rose sales were exempt only when made for resale under the historical rule cited in the letter.

A nonreturnable container sold with its contents followed the contents' tax treatment. If the roses were taxable, tax applied to the entire charge for roses and container even when the container charge was separately stated. If the rose sale was exempt, none of that combined charge was taxable.

Common questions

Did separate statement exempt the container charge?

No.

Citations and references

Sales and Use Tax Ruling 48 — historical bare-root-rose treatment cited; copy described as enclosed but not included in the official PDF
Sales and Use Tax Ruling 49 — historical nonreturnable-container treatment cited; copy described as enclosed but not included in the official PDF
Requesters' January 30 letter — bare-root-rose container tax question summarized; separate letter not reproduced and its year not stated in the official PDF

Source

Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/195-0000-all.html
Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/195-1000.pdf

Original ruling text

195.1000

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

May 25, 1970

C--- B. H--- and R--- L. R--Public Accountants
XXX West --- Street
--- ---, California
Attention:

Mr. R--- L. R---

Gentlemen:
This is an answer to your letter of January 30 in which you inquire respecting the application of the sales tax to non-returnable containers used in shipping bare-root roses. As indicated by Sales and Use Tax Ruling 48, copy enclosed, sales of bare-root roses are exempt only if sold for resale. In accordance with ruling 49, copy enclosed, sales of non-returnable containers to persons who place the contents therein and sell the container with the contents are non-taxable. The tax applies to the entire charge for container and contents, whether or not the charge for the containers is separately stated, but no portion of the charge is taxable if the sale of the contents is exempt. Very truly yours,

E. H. Stetson
Tax Counsel

NBH:ja

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