Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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I

325.0000 INTERSTATE AND FOREIGN COMMERCE—Regulation 1620

Annotation 325.0005

(a) IN GENERAL—SHIPMENTS INTO CALIFORNIA FROM POINTS OUTSIDE STATE

325.0005 Annual Reports. An organization prints 14,000 annual reports in California, shipping from within this state 10,000 reports to New York and 4,000 reports to California. Assuming the 10,000 shipped to New York would be used out of California and were shipped in accordance with Regulation 1620, the sale of these reports would be exempt from the sales tax. The sales tax applies to the sale of the 4,000 reports shipped to the customer in California.

In a second situation, the organization has annual reports printed outside California and also shipped from the out-of-state point. As a retailer engaged in business in this state, the organization is required to collect the use tax from the purchaser and report and pay it to this Board. Accordingly, the organization is required to collect and report and pay use tax on the sales price of the 4,000 annual reports shipped to the purchaser in this state. 3/8/93.