Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
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
710.0009 Branch Sales Office. A company's headquarters, including the tax department, is located out-of-state. The manufacturing plant is located in the Los Angeles area. The Division operating the plant has moved twice since 1978. Sales and service offices are located in various cities in California. Because of the expensive nature of the products, a finished goods inventory is not maintained. No order is regarded as accepted by the company until it is accepted by the Divisions marketing personnel presently located in City A. The company's field salespeople engage in the standard activities normally associated with salespeople; such as presentations, and discussions regarding product specifications, features, benefits, prices, and other terms and conditions of sale. When the principal point of contact between the seller and prospective customers is through the sales personnel located in or working out of a branch sales office, the place of sale for local tax allocation is that sales office even if the headquarters office has final approval and discount authority. In all but exceptional cases, a field sales office out of which the salesmen work in contacting customers, making presentations, and soliciting orders for the work involved is the place of "principal negotiations." The sales offices are required to hold seller's permits, and the company must allocate the local taxes to those field offices and not to its headquarters office. 7/10/91.