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BTLG Table of Contents > Sales and Use Tax Annotations > G > 280.0000 Gifts, Marketing Aids, Premiums and Prizes > Annotation 280.0888

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G

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

Annotation 280.0888

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280.0888 Sample Kits. A retailer furnishes sample kits, containing merchandise with a stated retail value, to marketing personnel who use a "hostess party" system to market the merchandise. The marketing personnel are allowed to retain the kits if they meet certain sales levels. Under the above conditions, the retailer is a seller, not a consumer, of merchandise provided to marketing personnel as compensation for their marketing efforts. The transactions are sales because there is a transfer of title and possession of the merchandise for a consideration, namely the marketing work done by the marketing personnel. 9/16/93.