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BTLG Table of Contents > Sales and Use Tax Annotations > U > 570.0000 Use of Property in State and Use Tax Generally > Annotation 570.0690

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570.0000 Use of Property in State and Use Tax Generally

Annotation 570.0690

(b) Use in State, Purchased for—Intent of Purchaser

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570.0690 Testing. A purchaser stated that a machine was received in California from outside the state, but was not yet functional. The purchaser had anticipated using it in California for several months before shipping it to Illinois. It is now anticipated that it will be tested in California for about a month before shipping to Illinois.

If the sole use of the property within California is testing prior to its functional use, and the property is subsequently shipped out of state, the exemption requirements of section 6009.1 are met. However, if the testing is not limited to pre-production test of the machine itself, but includes practice runs for such purposes as "testing" for its suitability for a particular purpose, or an operator's capabilities, the use tax will apply. 4/28/93.