Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 220.0253

220.0253 Support Services. An out-of-state retailer sells component parts that are used in a variety of high technology industries. A representative of the retailer occasionally travels to California to provide on-site engineering support services for products purchased by the retailer's California customers. The representative does not take orders from customers while in California.

A person does not have to accept actual orders to be regarded as present in California "for the purpose of selling." The representative's presence in California is directly related to the retailer's sales of products to California consumers and enables the retailer to maintain or expand the market for its product in this state. Accordingly, the retailer is regarded as engaged in business in California and must collect the applicable use tax from its California purchasers. 7/30/99. (Am. 2000–1).