Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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480.0000 RETAILER

Annotation 480.0250

480.0250 Retailer. A manufacturing firm has independent dealers located in Montana and Oregon. The dealers entered California on a regular basis to take orders. The dealers did not have to obtain the manufacturer's approval for an order. In some transactions the customers named the dealer as the payee on the check. The dealers set the selling price. In some cases, when the customer rescinded the transaction, the dealer refunded the money directly or arranged for the return of the property.

The manufacturer's name and address, not the dealer's, was prominently printed on the sales invoice. All credit card payments were made through the manufacturer's account. In some transactions, the deposit payable was made to the manufacturer. The manufacturer notified the customer when the property was to be manufactured or shipped. Although the manufacturer did not require approval of an order, it was not necessary since the manufacturer obtained payment before sending the property. Under these circumstances, the manufacturer is the retailer and is required to collect use tax since it had representatives operating in this state. 4/25/95.