Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY
(a) IN GENERAL
570.0415 Tractor Pulling Trailer Out of State. A tractor is sold by a California vendor to an out-of-state purchaser under a purchase order which requires the vendor to deliver the tractor to the purchaser at an out-of-state location. The purchaser requests the vendor to arrange for the delivery carrier, who furnishes only a driver, to tow to the out-of-state location a newly purchased trailer or the purchaser makes the arrangement directly with the carrier. The towing of the trailer by the tractor is not a taxable use of the tractor provided no cargo is carried, and provided that the purchase order for the trailer requires the trailer vendor to deliver the trailer to the purchaser at the same out-of-state location. We will treat the tractor and trailer as a single unit under this set of circumstances regardless of whether the tractor vendor is also the trailer vendor. 8/23/76.