Laws, Regulations and Annotations

Search

BTLG Table of Contents > Sales and Use Tax Regulations > Article 12 > Regulation 1629

Sales And Use Tax Regulations

Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration — Business Taxes (State Board of Equalization — Business Taxes — See Chapters 6 and 9.9)
Chapter 4. Sales and Use Tax

Article 12. Matters Involving Transportation of Property

Regulation 1629

---

Regulation 1629. Goods Damaged in Transit.

Reference: Sections 6006 and 6010, Revenue and Taxation Code.

(a) Sales Tax. If damage to goods in transit to the consumer occurs after the "sale" as defined in Section 6006 of the Revenue and Taxation Code is made, sales tax applies to the sale. If the damage occurs prior thereto, sales tax applies as follows:

(1) If the goods are destroyed, tax does not apply to damages paid the retailer for their destruction.

(2) If the goods are not destroyed, and are sold at retail in their damaged condition, tax applies to that portion of the total amount paid to the retailer representing the fair retail value of the goods in their damaged condition.

(b) Use Tax. Use tax does not apply with respect to goods destroyed before the purchaser makes any storage or use of the goods. If the goods are damaged but are nevertheless stored or used by the purchaser, tax applies to that portion of the total amount paid to the retailer representing the fair retail value of the goods in their damaged condition.

History—Effective as to Sales Tax August 1, 1933.

Effective as to Use Tax July 1, 1935.

Adopted as of January 1, 1945, as a restatement of previous rulings.

Amended by renumbering August 5, 1969, effective September 6, 1969.