Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2011
Sales And Use Tax Law
CHAPTER 2. THE SALES TAX
Article 1. Imposition of Tax
Reimbursement for tax.—Inasmuch as the tax is on the retailer and any amount of sales tax reimbursement which is separately stated is itself part of the purchase price, it is of no immediate legal concern to one purchasing an article at a list price of 15 cents plus 01 cent as sales tax reimbursement that the retailer is required to pay to the state a tax of only 4¼ mills on account of the transaction. The provisions of this and the preceding section relating to the "passing on" of the tax are valid. De Aryan v. Akers (1939) 12 Cal.2d 781, cert. den. (1939) 308 U.S. 581.
The provisions of this and the preceding section give the retailer no right of action against the consumer unless the consumer has agreed to pay reimbursement for the tax as a part of the price and has failed to do so. Clary v. Basalt Rock Co. (1950) 99 Cal.App.2d 458; Pacific Engineering Co. v. State of California (1952) 111 Cal.App.2d 31; Livingston Rock and Gravel Co. v. De Salvo (1955) 136 Cal.App.2d 156.