Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY
(a) IN GENERAL
570.0070 Credit Card Issuers Retain Title of Their Credit Cards. Most credit card issuers retain title to the cards by a specific statement on the back, thereby incurring use tax liability on those cards purchased outside California and issued to recipients in California. (See Annotation 570.0080.) Some credit cards do not contain such a specific statement. The statement on the card may give the issuer the right to withdraw credit privileges and demand the return of the card; or may require the customer to agree to surrender the card on demand; or may give the issuer the right to demand the surrender of the card. In each case, the wording gives the issuer sufficient control over the cards to be considered the consumer of those sent to California recipients. The tax consequences are the same as expressed in Annotation 570.0080. 9/13/72.