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Business Taxes Law Guide—Revision 2024
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
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325.0000 Interstate and Foreign Commerce—Regulation 1620
Annotation 325.0107
(a) In General—Shipments Into California from Points Outside State
325.0107 Sale on Approval Transaction. Sale on approval transactions are properly subject to use tax under Regulation 1620(a)(2)(B) where there is no participation by any branch, office, outlet, or other place of business, or any agent having a connection with such branch, office, outlet, or other place of business. While sales tax may be applied to sales of goods after they "have come to rest" in this state, a transaction retains its characteristics as an interstate transaction even though title may pass to the purchaser in this state, if the title transfer is an integral part of a transaction involving an order sent by the purchaser directly to a retailer at a point outside this state and involving direct shipment to the purchaser across a state boundary. In other words, "the goods that have come to rest" in this state are not within the constitutional meaning of that phase when the title transfer to be taxed is part of a continuous transaction involving interstate transmission of orders and transit of goods. 5/13/77.