Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
(c) TIME AND PLACE OF SALE
495.0670 Time of Sale. Taxpayer sells horses under a contract which provides that the seller retains title to the property until full payment is received. However, upon execution of a promissory note for any unpaid balance, the buyer has the right and power to direct the delivery or any other use of the horse.
The "sale" takes place at the time the promissory note is executed. It is at this time that the buyer acquires the right and power to direct the transfer of the horse. If the horse is left with the taxpayer for training and conditioning, the sale is subject to tax.
If at the time of the signing of the note the buyer instructed the taxpayer to ship the horse out of state and the taxpayer did so, the sale is exempt under section 6396. 3/29/90.