Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
557.0000 TRANSPORTATION CHARGES—Regulation 1628
557.0104 Delivery Charges. A company sells imported wines through retail outlets and also holds an off-sale beer and wine license. The company delivers wine from its retail outlets to consumers via its own vans or trucks. A flat charge for delivery is stated on the invoices. The charge remains the same without regard to the time or distance required for delivery and without regard to the quantity delivered. There is no written or oral agreement with the customer regarding the time at which title to the wine will pass to the customer. The company relied on ABC Rules 17 and 27 (California Code of Regulations, Title 4, Chapter 1, sections 17 and 27) to claim that title passed prior to delivery by operation of law so that it was not necessary to have any agreements with the customers.
Tax is due on the transportation charges. ABC Rules 17 and 27 do not support the company's claim that title passed prior to delivery. The cited portions of Rule 17 merely state that an order must be received from the customer before alcoholic beverages leave the vendor's premises. Subdivision (e) of Rule 27 merely prohibits delivery from storage facilities off the licensed premises. 6/12/89.