Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
280.0000 GIFTS, MARKETING AIDS, PREMIUMS AND PRIZES— Regulation 1670
280.0708 Healthwise Handbook. A California HMO had handbooks printed out of state and the printer shipped the handbooks by common carrier to postal centers in California. The postal service delivered the handbooks directly to the members in California. There was no charge to the member for the handbook. The handbooks are preaddressed and postage paid when they come to the California postal facility.
In this case, the gift of the handbooks takes place outside the state when the printer delivers them to the common carrier for shipment directly to the recipient in view of the fact that their journey is not interrupted for any purpose unrelated to their delivery to the HMO's members. Thus, there is no use of the handbooks made by the HMO in California to which tax applies. 8/18/95.