- Generally, containers, wrapping materials, bags, cans, twine, gummed tape, barrels, bottles, boxes cartons, sacks, pallets, and materials from which such containers are manufactured are exempt in California from sales and use tax.
- Some items are exempt, including sales of certain food products for human consumption, sales to the U.S. Government, sales of prescription medicine, and certain medical devices.
- Certain groceries, hot beverages, some types of farm items, and certain alternative-energy devices are also exempt.
- California has very complicated rules when it comes to taxes on shipping.
- Shipping charges can be tax-exempt, partially taxable, or fully taxable.
- Delivery-related charges for taxable products are not taxable when certain conditions are met.
- Handling charges are taxable in California, and using the term "handling" on invoices helps clarify tax application for customers.
- The use tax applies to the use, storage, or other consumption of tangible personal property purchased from a business located outside California for use in California.
- As a registered out-of-state retailer, the tax collected will generally be use tax.
Relevant clauses and regulations providing packaging sales tax exemption are in California Regulation 1589.