Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
432.0000 PRINTED SALES MESSAGES—Regulation 1541.5
432.0022 Catalogs. A wholesale and resale distributor of tangible personal property with offices in California has enough catalogs for several mailings printed to its special order by a non-California printer. The catalog describes products and prices and is regularly sent to customers throughout the country, without charge. A mailing house usually ships the catalogs by common carrier or postal service.
The catalogs are delivered in three different ways:
(1) Catalogs are delivered by the printer to the mailing house for distribution and shipping in the next mailing to the company's customers.
(2) Catalogs are delivered by the printer to the company for distribution directly to customers.
(3) Catalogs, which will be held until a future "regular interval" mailing time comes, are shipped to the company's warehouse where they remain on the pallets until the mailing house sends a truck to pick them up for the next mailing.
To be eligible for the exemption for sales of "printed sales messages", the delivery of the property must be to "any other person" without first being delivered to the purchaser. Thus, sales of catalogs delivered in example 1 are exempt from tax, but sales of catalogs delivered in examples 2 and 3 are subject to tax. 8/19/93.