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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
S
495.0000 Sale
Annotation 495.0953
(e) Retail Sale or Sale for Resale—Delivery by Owner, Former Owner, Factor or Agent
495.0953 Resale Certificate Issued with Respect to Drop Shipments. Corporation A is a California seller. A related out-of-state Corporation, Corporation B, purchases tangible personal property for resale to out-of-state Corporation C. Neither B nor C is engaged in business in California. C resells the property to its parent, D, which is located in California, and directs that A deliver the property to D in California. D proposes to issue a resale certificate to A.
If A takes the resale certificate from D in good faith, A will not be liable for tax on the transaction under section 6007. 7/5/94.