Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
490.0000 RETURNS, DEFECTS AND REPLACEMENTS—Regulation 1655
(a) RETURNED MERCHANDISE
(1) In General
490.0040 Option to Resell. Returned merchandise exclusion does not apply to package display stands which the customer resells to the original vendor pursuant to an option in the sales contract. There was not return of merchandise because of objective or subjective dissatisfaction. The exercise of the option to resell does not constitute a return of merchandise as contemplated in section 6012(c)(2). 6/4/57.