Laws, Regulations and Annotations
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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 220.0221
220.0221 Mail Order Catalogs. The taxpayer installs a number of mail order catalogs on the premises of public libraries with whom he has made arrangements, along with a supply of universal mail-order forms. Persons coming to the library may examine the catalogs, make a selection of merchandise desired, fill out an order form, and deposit it in a designated space in the library. The taxpayer processes the order form to the appropriate retailer and receives a 10% commission from the mail order firm.
Under this arrangement, each of the mail order firms whose catalogs are displayed in the library is a "retailer engaged in business in this state" pursuant to section 6203(b) because the taxpayer is a representative operating in this state for the purpose of taking orders for tangible personal property. The mail order firms are responsible for collecting use tax on all retail sales of tangible personal property to California customers even if the order did not originate from the taxpayer's catalog center. 12/2/85.