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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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E


220.0000 "Engaged in Business"

Annotation 220.0093.775


220.0093.775 Employees Entering California to Install Property Sold. An out-of-state firm maintains a single business facility outside California where it designs and fabricates art creations and displays for use in conventions, promotions, and other public displays. The firm's sales of goods to its California customers occur outside this state. Occasionally, the firm sends its employees to California to set up or install the visual displays it sells. On one occasion, the firm's employees were present in California for a one week period in order to install a large display.

Since the firm sends employees into California to set up or install visual displays for its customers, its physical presence in California makes the firm a retailer engaged in business inside this state pursuant to section 6203(b). Therefore, the taxpayer is required to register with the Board and collect use tax on its sales of property to its customers for use inside this state. 6/19/96.