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
570.0386 Storage Charges. An out-of-state retailer contracts for the sale of equipment to a company with a business location in California. The contract provides for storage charges with eventual shipment of the equipment to California. The storage charges were part of the original purchase order. After change orders were received, the storage charges were separately stated. The ultimate disposition of the property stored outside California is uncertain. The property may not leave the state it is stored in.
The total amount of the sales price includes any services that are part of the sale. The storage charges are considered a part of the sales price whether separately stated or not. Therefore, those storage charges related to property sent to California are included in the measure of the use tax. 8/2/95.