Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 185.0205

185.0205 Mall Operators. When a mall operator has a consistent policy of requiring all dealers who sell on the premises to have all their sales processed by the mall operators central cashier, the mall operator is deemed to be the "retailer" of all sales at the mall. The mall operator is the party that transfers title of the property to the customer upon payment of the purchase price and, therefore, is the "broker" of all such sales made. The operator must report all such sales made on his or her sales tax return and pay the tax owed directly to the Board. The sales tax reimbursements may not be turned over to the dealer on such sales. However, if the mall operator fails to make a return and pay the sales tax owed to the Board, the dealers are responsible for securing permits, filing returns and paying tax liability themselves pursuant to Regulation 1699(c).

If the mall operator permits the dealers to sell goods directly to the customers or has a central sales location but its use is optional with the dealers, the mall operator is subject to the provisions of Revenue and Taxation Code sections 6073 and 6073.1. As such, the mall operator will be held liable for the tax due on sales processed by the dealers at their booths only if the dealers fail to report and pay the tax and the dealers have not been issued individual seller's permits. 5/5/93.