Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2017

Sales and Use Tax Annotations

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Annotation 220.0162

220.0162 Maintaining an Inventory. An out-of-state seller that has agreed to provide and maintain merchandise inventory at certain locations (of others) in California and that has representatives who make periodic calls at such locations to provide prominent point of sale display of some of the merchandise, is "engaged in business" in California. The seller is required to collect use tax on direct mail-order catalog sales to California consumers even though the activity creating the nexus may be unrelated to the mail-order sales. It is not necessary that the mail order sale be made as a result of local intrastate activities of the seller for that seller to be required to collect and remit the applicable use tax. 9/26/72. (Am. M98–3).