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 432.0070

432.0070 Preprinted Catalog Pages. A California computer products company purchases preprinted catalog pages from an out-of-state retailer who ships the pages directly to an in-state printer. The in-state printer incorporates the preprinted pages into catalogs that are printed for the computer products company. The final product is distributed to the company's customers in accordance with Regulation 1541.5.

Since the out-of-state printer would only print the pages pursuant to a specific order from the customer, the pages are considered to be "printed to the special order" of the purchaser. Therefore, when the computer product company purchases the preprinted pages from the out-of-state printer and has them shipped to the in-state printer for incorporation into the catalog, the use of the preprinted pages by the purchaser is exempt from use tax. 5/6/92.