Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 220.0095

220.0095 Engaged in Business—Trade Shows. A firm's employees attended a trade show at least twice a year for four consecutive years. In addition, out-of-state dealers of its products regularly solicited sales in California with the sales order issued in the firm's name rather than the dealer's.

The firm does not have an office, warehouse or other place of business in California. During the four-year period, it sold 157 items for a total selling price of $211,184 from sales made at trade shows or solicited by the dealers. In addition, fifty to sixty percent of its sales into California were by telephone orders as the result of an advertisement in trade magazines.

The firm has sufficient nexus to require collection of tax on not only the sales at trade shows and by dealers, but also the mail order sales. 4/25/95. 5/9/01. (Am. 2002–1).

(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.)