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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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S


495.0000 Sale

Annotation 495.0677

(c) Time and Place of Sale


495.0677 Title Transferred Prior to Delivery. A retailer has a contract for the development of computer hardware and software. Physical delivery of the computer hardware and software occurred in February 1991 but the customer was invoiced, title transferred, and payment was received all during the third quarter of 1990. The customer had until March of 1992 to make final acceptance.

Pursuant to section 6006, "sale" means and includes any transfer of title or possession, conditional or otherwise, of tangible personal property for a consideration. In the above situation, although physical delivery did not occur until February of 1991, title transferred and payment was received during the third quarter of 1990. Since the physical delivery of the computer hardware and software is not required for a sale to occur, tax was due on the return for the third quarter of 1990. 11/5/93.