(a) GENERAL. These regulations are issued by the State Board of Equalization
pursuant to Section 7051 of the Revenue and Taxation Code, to implement, interpret
or make specific provisions of the California Sales and Use Tax Law and to aid in the
administration and enforcement of that law, which is contained in Part 1 of Division
2 of the Revenue and Taxation Code. Also included in Subchapter 4 are regulations
pertaining to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 of
Division 2 of the Revenue and Taxation Code) and to local transit district
transactions (sales) and use taxes (Part 1.6 of Division 2 of the Revenue and Taxation
Code). The local sales and use taxes are collected by the Board with state sales and
use taxes but are imposed under uniform local ordinances authorized by state law.
(b) REVISION. The State Board of Equalization beginning in 1969, undertook
a complete revision and restructuring of the sales and use tax regulations. The series
numbered as sections 1900 through 2206 have been replaced by a new series of
sections numbered between 1500 and 1899. The provisions of the new codification
insofar as they are substantially the same as previous rulings (regulations) relating to
the same subject matter shall be construed as restatements and continuations and not
as new interpretations.
(c) USE OF TERMS.
(1) The term "tax applies" as used in these regulations in reference to a sale or
to an amount included in a sale, means, unless otherwise indicated, that either:
(A) The sales tax applies, measured by the gross receipts from the sale, or
(B) The use tax applies to the storage, use, or other consumption of the
property sold, measured by the sales price.
(2) When it is stated that certain persons are "retailers" of tangible personal
property it should be understood that they must comply with all requirements
imposed upon retailers, including:
(A) Obtaining a seller's permit for each place of business in this state.
(B) Filing returns and paying tax.
(C) Collecting use tax when applicable and remitting the tax with returns.
(D) Keeping records and giving resale certificates.
(3) When it is stated that certain persons are "consumers" of tangible personal
property under stated conditions, it should be understood that the sales to such
persons are retail sales in respect to which either the sales or use tax applies and that
resale certificates should not be given by such consumers in purchasing the property.
(d) VIOLATIONS. Violation of any of the rules and regulations issued by the
Board may subject a violator to the revocation or suspension of his seller's permit. A
person who engages as a seller without a permit or after a permit has been suspended
is guilty of a misdemeanor.
History: Adopted August 5, 1969, effective September 6, 1969.
Amended November 3, 1971, effective December 3, 1971.
Amended December 7, 1978, effective February 18, 1979. Removes language on
tax reimbursement from subsection (c)(2)(D).