Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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I

325.0000 INTERSTATE AND FOREIGN COMMERCE—Regulation 1620

Annotation 325.0960

(c) SHIPMENTS FROM CALIFORNIA TO POINTS OUTSIDE STATE
(4) Delayed Shipment; Use Prior To Shipment; "Bailee Clauses"

325.0960 Parts Produced from Molds. Out-of-state customer contracted with a California manufacturer for the production of certain molds which were to be retained by the manufacturer for use in producing parts, title to such molds to vest in the customer upon completion of their manufacture. No parts were ever produced in California and subsequently the molds were shipped to the out-of-state customer.

Contract obviously intended that possession of the molds was to remain with the California manufacturer for subsequent use in making parts and there is no basis for holding such sale exempt as an interstate transaction. 8/6/53.