Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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410.0000 PERMITS—Regulation 1699

Annotation 410.0360


410.0360 Sales for Resale. Corporation A, licensed to do business in California, manufactures an item outside of California and stores it in a warehouse in California. Corporation B, licensed in California, from time to time purchases the items from Corporation A and sells it to various California distributors.

Neither corporation incurs sales tax liability as sales by each are sales for resale. No use tax liability is incurred if the property is at all times being held for sale and not used or consumed by either corporation in this state.

Both corporations should, however, hold a seller's permit even though all sales are sales for resale. 3/21/55.