Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Transactions and Use Tax Annotations

805.0000 COLLECTION OF TAX BY RETAILERS—Regulation 1827

Annotation 805.0166

805.0166 Sales with In-State Participation. An out-of-state retailer makes sales into California with all sales shipped FOB the out-of-state point. The retailer has an in-state independent sales representative, who solicits orders and forwards them to the out-of-state retailer. This creates sufficient nexus to require the retailer to collect state and local use tax from its California consumer customers on the sales solicited by the in-state representative and on the sales made directly from the out-of-state location without in-state participation.

With respect to the collection of district use tax, the retailer has a duty only with respect to those sales made in counties having county-wide taxing districts in which the in-state representative has a physical presence. Physical presence includes temporary presence resulting from sales trips into counties other than the county in which the representative's office is located. 10/8/92.