Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
557.0000 TRANSPORTATION CHARGES—Regulation 1628
557.0420 Out-of-State Purchases. Where title to property passes to buyer at an out-of-state point of shipment, the actual freight paid by seller may be excluded from taxable gross receipts.
Where property is shipped from out-of-state point to seller's warehouse in California and thence to the buyer, the only excludable freight charges are those incurred from the California warehouse to the buyer, assuming title passes at that point.
If, in the paragraph above, the buyer picks up the goods at the California warehouse, no exclusion of freight charges may be made.
Where the buyer designates "f.o.b. destination" the freight charges are includable in taxable gross receipts as title passes at destination. 4/7/53.