Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations

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325.0000 Interstate and Foreign Commerce—Regulation 1620

Annotation 325.0106

(a) In General—Shipments Into California from Points Outside State

325.0106 Sales on Approval. A taxpayer receives property in California from an out-of-state retailer pursuant to a sale-on-approval arrangement. The seller has no office or personnel located in California. The taxpayer examines the property and decides to buy the property. The property is located in California. Thus, the sale takes place in California. Nevertheless, use tax rather than sales tax applies because there is no participation in the transaction by a local office of the seller. 5/20/94.