SACRAMENTO, Calif. -- Gov. Gray Davis of California has signed into law a bill that eliminates a sales tax on reusable plastic containers. Under the new law, the rental of RPCs in the produce industry will no longer be subject to a sales tax, giving these reusable shipping platforms a tax status equal to disposable pallets and cardboard boxes.
n, the Washington-based organization of companies that make, rent and use reusable shipping platforms, praised the new law.
"The governor's action shows leadership on both the environment and the issue of equity in commercial competition," said Bob Reivik, RPCC president and president of material handling for Cookson Plastic Molding, Latham, NY. "We believe this law will encourage the remaining states taxing reusable pallets and containers to reconsider their tax policies."