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Business Taxes Law Guide—Revision 2024

Uniform Local Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1.5. Uniform Local Sales and Use Taxes
Chapter 1. General Provisions

Section 7205


7205. Place of sale. (a) For the purpose of a sales tax imposed by an ordinance adopted pursuant to this part, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his or her agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from those sales shall include delivery charges, when those charges are subject to the state sales and use tax, regardless of the place to which delivery is made.

(b) (1) In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated for the purpose of a sales tax imposed by an ordinance adopted pursuant to this part shall, subject to paragraph (2), be determined under rules and regulations to be prescribed and adopted by the board.

(2) In the case of a sale of jet fuel, the place at which the retail sale of that jet fuel is consummated for the purpose of a sales tax imposed by an ordinance adopted pursuant to this part is the point of the delivery of that jet fuel to the aircraft.

History—Stats. 1961, p. 3113, operative January 1, 1962, substituted "retail sales are consummated at the place of business" for "retail sales shall be presumed to have been consummated at the place of business" and made minor changes for clarity. Stats. 1998, Ch. 1027, in effect September 30, 1998, operative January 1, 1999, added subdivision letter designation (a) before first paragraph, added "or her" after "or his" in the first sentence, and substituted "those" for "such" twice in the second sentence therein; created new subdivision (b) with the former third sentence of the former first paragraph and added subparagraph number designation (1) before "In the event", substituted "state" for "State", and added ", subject to paragraph (2)" after "part shall" therein; and added subparagraph (2) therein. Stats. 2005, Ch. 391 (AB 451), in effect January 1, 2006, but operative January 1, 2008, deleted ", if both of the following conditions are met: (A) The principal negotiations for the sale are conducted in this state. (B) The retailer has more than one place of business in the state" after "to the aircraft" in paragraph (2) of subdivision (b).

Place of sale.—It is proper to divide tax from sales by a departmentalized retail store straddling a county line according to the location of each department with respect to the county line. City of Pomona v. State Board of Equalization (1959) 53 Cal.2d 305.

Pooling procedure valid.—The pooling procedure adopted by the State Board of Equalization for the allocation of local sales tax revenues imposed in connection with construction contractors is valid. City of San Joaquin v. State Board of Equalization (1970) 9 Cal.App.3d 365.