Laws, Regulations and Annotations

Search

BTLG Table of Contents > Sales and Use Tax Annotations > G > 280.0000 Gifts, Marketing Aids, Premiums and Prizes > Annotation 280.0060

Sales and Use Tax Annotations

A    B    C    D    E    F    G    H    I    J    L    M    N    O    P    R    S    T    U    V    W    X   

---

G

---

280.0000 Gifts, Marketing Aids, Premiums and Prizes— Regulation 1670

Annotation 280.0060

---

280.0060 Advertising Material—Gifts. Advertising or promotional material shipped or brought into this state is subject to use tax when a gift of the material is made and title passes to the donee in this state. An out-of-state company, using its own trucks, transports the advertising and promotional materials of its affiliated California retailer from a point outside California to the United States Postal Service (USPS) in this state. The USPS delivers the materials to potential customers who receive the promotional materials for no consideration. In this case, the California retailer divests itself of control over the property at the point where the merchandise is delivered by the out-of-state company, on behalf of the California retailer, to the USPS in this state. The delivery to the USPS constitutes the completion of a gift since the advertising or promotional material is distributed free of charge to the donees. The act of giving the material away at no charge is a use in this state and such use is taxable. 3/28/02.