Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Transactions and Use Tax Annotations

800.0000 APPLICATION OF TRANSACTIONS (SALES) TAX AND USE TAX—Regulation 1823

Annotation 800.0950

800.0950 Sales Agents Operating in Districts. Taxpayer operates from a warehouse in Burbank, California, and a showroom in Hollywood, California. It ships products to all points in California and the United States. It has no other offices or distribution points, but does employ outside people who solicit for business throughout the state.

All products are sold F.O.B. the Burbank warehouse and all shipments are arranged with freight forwarding companies by the clients.

The taxpayer's place of business is in the Los Angeles County and, as a result, all sales to Los Angeles County residents or in which the purchaser picks up the goods at the warehouse are subject to Los Angeles County transaction taxes.

When pursuant to the contract of sale, products are shipped out of Los Angeles County, its transaction (sales) taxes do not apply. However, if taxpayer ships property into a countywide taxing district in which one of its sales agents is operating, it is engaged in business in that district and is required to collect use tax on that sale at the rate in effect there. 3/25/92.