Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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480.0000 RETAILER

Annotation 480.0027

480.0027 Card Lock Fueling Systems—Out-of-State Participant. Owners of unattended card lock fueling stations formed a network whereby their customers may purchase fuel at any of the network's participating fueling stations by use of a credit card issued by its card lock station. The network includes participants who do not operate in California except for network transactions to its customers in California. There is a network clearing house for tracking and reporting the participant's fuel purchased by a participant's customer at card lock fueling stations operated by other participants.

Under this scenario, the credit card issuer (Foreign Participant) has actually contracted to sell fuel to the card holder and purchases the fuel from the Host Participant for resale. Accordingly, the Foreign Participant makes the retail sale and the Host Participant delivers the fuel on behalf of the Foreign Participant. The Host Participant is considered making taxable retail sales under section 6007 until the Foreign Participant registers with the Board as a retailer. 7/3/89.