Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
220.0000 "ENGAGED IN BUSINESS"
220.0094 Engaged in Business—Out-of-State Dealer of Coins. An out-of-state retailer of rare coins who has no location, representative, or inventory in this state, is not regarded as "engaged in business" merely because the dealer may attend one or more trade conventions in this state, for the purpose of purchasing rare coins, as long as the dealer does not promote or solicit sales at the convention. This is the case even if the dealer makes subsequent mail order sales, solicited through trade publications, to someone who had coincidentally attended the same convention as the retailer.
If the dealer participates in selling at the conventions, the dealer would be doing business in California. As such, the dealer would be required to pay sales tax on sales made at the conventions. The dealer would also be required to collect and pay the use tax on sales made to California consumers, from outside this state, regardless of whether those purchasers attended the show. 12/8/94. (Am. 2003–3).
(Note: Subdivision (e) was added to Revenue and Taxation Code section 6203, effective April 1, 1998, and further amended operative January 1, 2001, to add an exception from the definition of "retailer engaged in business" for specified trade show activities.)