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 432.0760

432.0760 Special Order of the Purchaser. An out-of-state wholesaler contracts with out-of-state printers for catalogs and fliers advertising its products. These advertising materials are imprinted with dealers' names. Dealers are not agents of the wholesaler, but are independent retailers. The catalogs and fliers are shipped by the printer to California dealers and to the dealers' customers. The wholesaler charges the dealers for the advertising materials. The dealers make no charge to their customers for the materials.

The regulation on printed sales messages requires that advertising materials be "printed to the special order of the purchaser." The advertising materials described here are designed and printed to the request of the wholesaler. Accordingly, the sales to the dealers do not meet the requirements for exemption under the regulation. However, on shipments direct to the customer, the use takes place out of state when the printed matter is deposited in the mail. In these instances use tax does not apply. 5/17/90.