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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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C


175.0000 Collection of Use Tax by Retailers—Regulation 1684

Annotation 175.0146


175.0146 Representative Entered State to Solicit Sale. An out-of-state manufacturer made its first equipment sale to a California customer in 1995. The manufacturer has no employees residing in California and owns no property in California. Since January of 1991, it has made seven sales calls to California, including three for this sale.

The application of section 6203 is not conditioned on a certain minimum number of visits into this state. Rather, when a retailer, through its employees or representatives, enters California for the specific purpose of engaging in selling activities, the explicit provisions of the statute require that a use tax collection duty be imposed on that retailer. Therefore, as a retailer engaged in business in this state under section 6203, the manufacturer must collect the applicable use tax from it California customer and remit that tax to the state. 9/11/95.