Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 175.0018

175.0018 Collection of Use Tax by California Department of Corrections (CDC) and/or California Training Facility (CTF). When an inmate of the CDC or CTF orders tangible personal property via a catalog from an out-of-state retailer and has the property shipped to California, the sale does not occur in California and sales tax does not apply. However, the transaction is subject to use tax because the tangible personal property is being purchased for storage, use, or other consumption in California.

If the out-of-state retailer collects the use tax from the inmate, the inmate's use tax liability is satisfied. If the out-of-state retailer does not collect the use tax from the inmate, the inmate must pay the use tax to the State of California. Since CDC and CTF are instrumentalities of the State of California, they can legally facilitate the inmate's payment of his or her use tax liability to the State of California. Therefore, it is appropriate for CDC and CTF to collect an inmate's use tax and remit such tax to the Board of Equalization where the inmate has not paid such tax to its retailer. 2/17/05. (2006–1).