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 432.0120.500

432.0120.500 Seller also Common Carrier. The taxpayer manufactures and sells printed sales messages. The same taxpayer is licensed as a common carrier. As a common carrier, the taxpayer also contracts to deliver the messages it has sold to customers. The taxpayer separately contracts and invoices for the common carrier services. Title to the messages sold passes to the customer before the commencement of delivery to the recipients. Under section 6379.5, the common carrier must be an entity other than the seller or the purchaser. Thus, the sale of the messages does not comply with the provisions for the exemption when the seller and the common carrier are the same entity regardless of the passage of title to the printed sales messages. 6/14/96.