Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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U

570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY

Annotation 570.1120

(d) EXCLUSIONS

570.1120 Delivery of Property in State for Out-of-State Use. An out-of-state company sold and shipped equipment to a customer in San Diego from the out-of-state location. The customer stated the purchase was exempt because the equipment was to be used in Mexico. The company did not receive any type of exemption certificate.

While it is possible that the customer's use of the property may qualify for an exclusion from the use tax, the sale is not exempt merely because the customer states the property will be used in Mexico. For example, the property may be nontaxable under section 6009.1. In order for a use tax exemption or exclusion to apply, the customer must prove the facts required to meet an exemption or exclusion. 10/14/88.