Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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C

175.0000 COLLECTION OF USE TAX BY RETAILERS—Regulation 1684

Annotation 175.0017

175.0017 Collection Agency. An out-of-state mail order business has no personnel in California nor does it maintain any office space in this state. It is proposing to use the services of a collection agency located in California. The agency does not collect funds on behalf of the creditors. Instead, employees attempt to persuade debtors to pay amounts they owe directly to their creditors.

Such debt collection activities are not regarded as being for the purpose of selling, delivering, installing, assembling, or the taking of orders for tangible personal property. Therefore, the out-of-state mail order business would not be considered a retailer engaged in business in this state under subdivision (b) of section 6203 on account of this collection agency's debt collection activities. 8/7/95.