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 432.0096

432.0096 Sales Subject to Use Tax. Catalogs and flyers are printed to the order of an out-of-state wholesaler of office supplies by an out-of-state printer. By previous agreement, the catalogs and flyers are sold by the wholesaler to its dealers, some of whom are in California. The materials are shipped by common carrier from the printer directly to the dealer or to the dealer's customers. No charge is made to the dealer's customers.

The catalogs and flyers do not qualify for exemption as "printed sales messages" because they were not printed to the special order of the purchasers, the dealers. Those items that were shipped from the out-of-state printer directly to the dealer's customers are not subject to either California sales or use tax. The sale occurred out of state, and the use consisted of passage of title by gift or donation to the addressee, which use occurred upon deposit of the property with the delivering carrier, which also occurred out of state.

The portion of the materials shipped directly to the dealers in California are subject to use tax, and the wholesaler is required to collect the tax and remit it to the state. 5/17/90.