Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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432.0000 PRINTED SALES MESSAGES—Regulation 1541.5

Annotation 432.0033

432.0033 Direct Mail Advertising. A company sells direct mail advertising to automotive dealers in California and throughout the United States. The mailings of letters are custom printed for the purchaser and are received by the recipient at no cost to them. For out-of-town customers, the mailings are shipped to one of the customer's employees for mailing at their local post office. The mailings are pre-addressed, stamped and sealed. The exemption provided for "printed sales messages" (section 6379.5) is not available when the mailing is delivered to the purchaser. Since delivery was made to the purchaser, tax applies to the charges made by the printer unless otherwise exempted.

The other relevant exemption is for sales in interstate commerce. The sales are exempt when the contract requires the packages of printed sales messages to be shipped, and they are in fact shipped to the out-of-state purchasers by the postal service. 10/3/90.