Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 2. The Sales Tax

Article 3. Presumptions and Resale Certificates

Section 6091

6091. Presumption of taxability; resale certificate. For the purpose of the proper administration of this part and to prevent evasion of the sales tax it shall be presumed that all gross receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property is not a sale at retail is upon the person who makes the sale unless he takes from the purchaser a certificate to the effect that the property is purchased for resale.

Gross receipts.—Where a taxpayer's records show his receipts from sales to be substantially less than his disbursements, the difference, in the absence of explanation, is deemed to represent additional taxable sales. People v. Schwartz (1947) 31 Cal.2d 59.

Overcoming presumption.—Submission of questionnaires by taxpayer to its purchasers to establish that sales were for resale failed to rebut presumption of taxability in the absence of resale certificates. Honeywell, Inc. v. State Board of Equalization (1982) 128 Cal.App.3d 739.

"Retail sale" includes drop shipment under 6007.—Drop-ship rule in second paragraph of section 6007 is constitutional and is an alternative definition of "retail sale" and under section 6091, a seller must overcome the presumption that its sale is at retail, including a "retail sale" as defined by the drop shipment rule. Lyon Metal Products, Inc. v. State Board of Equalization (1997) 58 Cal.App.4th 906, cert. denied (1998) 141 L.Ed.2d 158.