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
185.0325 Seller. A taxpayer operates a catering house, making wholesale sales to catering truck owners. The trucks are parked on the taxpayer's premises overnight, during which time the propane tanks are filled by a vendor of such fuel. An invoice indicating meter readings and the gallonage used is placed on the windshield of each truck. The taxpayer is given a copy of the invoice and collects the amount due for the fuel along with the amounts due for the food, etc. The taxpayer does not report the sales of propane, but passes the collections on to the propane supplier, less, by pre-agreement, ten cents a gallon.
A seller is the person who has authority to pass title to goods being sold, to set the price at which it will be sold, to issue billings, and to exercise control over the goods until they are sold. In this case the taxpayer had none of this authority. It merely collected the amount due from the drivers for the fuel company in exchange for a pre-agreed fee-per gallon. The catering house operator is not the seller of the fuel. 9/27/91.