Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY
(a) IN GENERAL
570.0438 Withdrawals from Ex-Tax Inventory. When a person properly buys tangible personal property ex-tax for resale and withdraws some of it for use in California, he/she is liable for use tax measured by the cost of the property. However, where the property is consumed out-of-state, tax does not apply. (Revenue and Taxation Code 6009.1.)
(Note: A gift of property in this state is a use in this state not withstanding out-of-state shipment. See Annotations 280.0040 and 280.0640.) 2/5/93.