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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
I
325.0000 Interstate and Foreign Commerce—Regulation 1620
Annotation 325.0485
(c) Shipments from California to Points Outside State
(1) Generally
325.0485 Gifts. A California retailer sells gifts by mail order. Gifts are shipped directly to the recipients by the retailer's suppliers who are located both inside and outside California. Customers and recipients are also located both inside and outside California. Tax applies as follows:
| Customer Location | Recipient Location | Supplier Location | Applicable Tax | Explanation |
|---|---|---|---|---|
| California | California | California | Sales Tax | Retail sale in California |
| California | Out of State | California | None | Sale in interstate commerce |
| California | California | Out of State | None | (1) |
| California | Out of State | Out of State | None | Property never comes into this state |
| Out of State | California | California | Sales Tax | Retail sale in California |
| Out of State | Out of State | California | None | Sale in interstate commerce |
| Out of State | California | Out of State | None | (1) |
| Out of State | Out of State | Out of State | None |
Property never comes into this state |
(1) Title to property would pass outside California when the supplier delivers the item to the shipper. Therefore, no sales tax would apply because the sale would not take place in California. Use tax would not apply because the purchaser would not be consuming the item in California.
The retailer is liable for sales tax if the tax applies to a particular transaction. 7/7/87.