Business Taxes Law Guide – Revision 2013
 

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S

495.0000 SALE

Annotation 495.0953

(e) RETAIL SALE OR SALE FOR RESALE—DELIVERY BY OWNER, FORMER OWNER, FACTOR OR AGENT

495.0953 Resale Certificate Issued with Respect to Drop Shipments. Corporation A is a California seller. A related out-of-state Corporation, Corporation B, purchases tangible personal property for resale to out-of-state Corporation C. Neither B nor C is engaged in business in California. C resells the property to its parent, D, which is located in California, and directs that A deliver the property to D in California. D proposes to issue a resale certificate to A.

If A takes the resale certificate from D in good faith, A will not be liable for tax on the transaction under section 6007. 7/5/94.