Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 220.0256

220.0256 Telecommuting In-State. An out-of-state web-based retailer who is not engaged in business in California hires a website designer who telecommutes from his home in California. The designer is responsible for improving the quality of communication in the company's websites. The designer is responsible for graphic design, information design, interface design, usability testing and evaluation, documentation, special projects, teaching, consultation, and quality assurance. The designer does not have any contact or involvement with the retailer's customers and is not involved with the actual orders placed by customers.

Since the only business activities conducted at the designer's home are telecommuting activities included in his job description and no portion of the home is in anyway held out to be what could be called a business location of the out-of-state company, such as the placement of a sign out front or the holding of classes at the home, the out-of-state retailer would not be regarded as engaged in business in California. 6/21/99. (Am. 2000–1).