Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
220.0000 "ENGAGED IN BUSINESS"
220.0084 Demonstrator Units. A taxpayer advertises in trade and business journals. Its only place of business is outside of California. If a California firm contacts the taxpayer, an out-of-state based salesperson visits the California firm together with a demonstrator unit for the customer's evaluation. Upon completion of the evaluation period, the customer may order units which are installed on the customer's vehicle at the out-of-state business location for return to California.
The firm is "engaged in business" in California and is required to collect the use tax. 8/9/73.