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BTLG Table of Contents > Sales and Use Tax Annotations > C > 175.0000 Collection Of Use Tax By Retailers > Annotation 175.0148

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C

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175.0000 Collection of Use Tax by Retailers—Regulation 1684

Annotation 175.0148

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175.0148 Sale Does Not Occur Until Delivery Is Made on Standing Orders.
An out-of-state retailer of vitamins, who advertises in California on a television shopping system, establishes nexus in California in May. It offers a purchase method whereby a customer may place a "standing order" for the same merchandise to be shipped on a monthly basis for either six or twelve months. Since sales occur upon transfer of title or possession, and title passes when the seller completes its responsibilities with respect to the physical delivery of the property, the retailer is required to collect use tax on shipments made to California consumers on and after May, regardless of the fact that the order may have been placed before April, when nexus was established. 8/25/94.