Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
185.0000 CONSIGNEES AND LIENORS OF TANGIBLE PERSONAL PROPERTY FOR SALE—Regulation 1569
185.0141 Liability of Consignee. "A," who does not have a seller's permit, uses a mini mart's seller's permit number to buy gasoline from the distributor. The gasoline purchased is sold through the mini mart. The distributor invoices "A" for the fuel and the mini mart does not get a copy of the invoice. The mini mart reports the net of the sales tax collected on its retail sales less the precollected sales tax paid by "A" to the distributor.
The mini mart is regarded as an independent contractor taking possession of fuel owned by "A" to sell on consignment. Thus, the mini mart is the retailer of the fuel and tax applies to the gross receipts of the fuel sold by the mini mart. In addition, "A" should hold a seller's permit since it is engaged in the distribution and sale of gasoline and other petroleum products. "A" is required to precollect the sales tax from and issue an invoice to the mini mart. 9/19/90.