Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
280.0000 GIFTS, MARKETING AIDS, PREMIUMS AND PRIZES— Regulation 1670
280.0320 Contest. A manufacturer conducts a contest as a result of which some of his merchandise is delivered to California winners by the manufacturer's distributor. The manufacturer reimburses the distributor of this merchandise. The manufacturer is the consumer of the merchandise prizes and the distributor has made a taxable retail sale thereof to the manufacturer, the measure of tax being the amount for which the distributor is reimbursed by the manufacturer. 2/10/55.