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BTLG Table of Contents > Sales and Use Tax Annotations > G > 280.0000 Gifts, Marketing Aids, Premiums and Prizes > Annotation 280.0740

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G

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

Annotation 280.0740

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280.0740 Incentive Program. Grocers throughout the nation are given points for selling manufacturer's products. They are also supplied with a premium catalog listing items which may be acquired by a grocer upon the surrender of points earned at the rate of 1H per point.

The manufacturer is selling the premium merchandise to the grocers whether it ships the merchandise or directs a supplier so to do. The selling prices is the number of points surrendered by the grocer at the rate of 1H per point.

Delivery of such premium merchandise to an out-of-state grocer is an exempt interstate commerce transaction. However, deliveries to California grocers are subject to sales tax. 8/31/55.