Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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480.0000 RETAILER

Annotation 480.0193

480.0193 Optometrist Buying Group. A group purchases optometric supplies for its member doctors. If the facts are as follows, the group would not be considered a retailer and would not be required to obtain a seller's permit:

(1) The invoices of the group's vendors show the member doctors as the purchasers.

(2) The group has agreements with the vendors which provide that if the group does not pay the vendors, the vendors have the right to seek payment for the supplies directly from the member doctors.

(3) The group pays the vendors for the supplies ordered by a member doctor only after it receives payment from the member doctor.

If these are not the facts, the group is a retailer, not merely a billing agent, with transactions structured as sales by the vendor to the group with immediate resale to the member doctors, and the shipping arrangements are standard drop shipment from the vendor to the group's customers, not to the vendor's customers. 10/11/89.