Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Uniform Local Sales and Use Tax Annotations
710.0000 PLACE OF SALE FOR PURPOSES OF BRADLEY-BURNS UNIFORM LOCAL SALES AND USE TAXES—Regulation 1802
710.0005 Bid Process. A taxpayer is in the business of supplying materials to large utilities. It maintains a plant and a Customer Service Center ("CSC") in one county and an office in another county for its account managers. The account managers are engineers who work with the utilities to determine their needs, i.e., specifications, materials, etc. If taxpayer makes products that fit the utility's needs, taxpayer is placed on utility's list of approved sources.
If the utility decides to make a purchase, it sends out a request for bid ("RFB") to its approved sources which includes the taxpayer's CSC office. Taxpayer's CSC office renders the quote back to the utility. If taxpayer gets the contract it is let through taxpayer's CSC office. The account managers maintain customer contact during the process, but have no pricing authority or power to make changes in the bid.
Since the actual sale is made through the bid process, the office that makes the bid is the place of sale for local tax purposes. (Regulation 1802 (a)(2).) 12/18/92.