Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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480.0000 RETAILER

Annotation 480.0085

480.0085 Drop Shipments—Payment of Tax Directly by Consumer. A California taxpayer sells property to an out-of-state retailer who is not engaged in business in this state. The retailer directs the taxpayer to deliver the property to a California consumer. The consumer informs the taxpayer that it self assesses the tax and provides the taxpayer with its seller's permit number.

Under section 6007 of the Revenue and Taxation Code, the taxpayer is liable to the Board for the tax. The mere statement by a consumer who is a permit holder that it self-assesses the tax does not relieve the taxpayer from liability. The taxpayer will be relieved of liability if it can show that the consumer has actually paid the tax to the Board. 8/9/94.