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 325.0110

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

325.0110 Sales Tax v. Use Tax. Company A mails its purchase order to Company B which is located in New Jersey. The property is shipped to California by common carrier from Illinois. Payment is remitted to Company B's California office.

Since title passed upon delivery to the carrier in Illinois, the transaction is not subject to sales tax, but rather use tax. The fact that payment was made to the California office is irrelevant under these circumstances. 8/23/91.