Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
290.0000 GOODS DAMAGED IN TRANSIT—REGULATION 1629
290.0060 Replacement of Damaged Goods by Carrier. Where a carrier purchases a replacement part for goods damaged in transit and furnishes such part to the consignee in settlement of a damage claim, it is a taxable retail sale to the carrier. Had the original retailer purchased the part and sold it to the consignee in fulfillment of its warranty, the sale to such original retailer would have been a sale for resale and the subsequent sale to consignee would have been regarded as included in the original sale as a "replacement." 3/24/53.