Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
325.0000 INTERSTATE AND FOREIGN COMMERCE—Regulation 1620
(a) IN GENERAL—SHIPMENTS INTO CALIFORNIA FROM POINTS OUTSIDE STATE
325.0055 Installation by Out-of-State Seller. A purchase order for tangible personal property was sent by Company A from California direct to Company B located out of state. B has no California branch or office. Delivery in Californiawas made via common carrier from out of state with freight prepaid FOB destination. Installation in California was performed by B's representative from an out-of-state facility.
Under Regulation 1620, the sales tax can not apply. It makes no difference whether the terms of the delivery are FOB destination or whether the California installation is performed by the seller's out-of-state representatives. Use tax, rather than sales tax, applies to the purchase price in this transaction. 10/20/88.