California untaxes returnables

California has removed the sales tax from the rental of reusable pallets and containers in the agriculture industry, thereby granting reusables the same tax status as disposable pallets and corrugated boxes.

The new law was praised by the Reusable Pallet and Container Coalition (RPCC) as good for the environment and commercial competition. RPCC says the new law should encourage other states to remove similar sales taxes. Florida has already done so.

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