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 325.0450

(c) Shipments from California to Points Outside State

(1) Generally

325.0450 Electrical Components Added before Shipment. A taxpayer fabricated a custom metal exhibit for an out-of-state customer, which was to be shipped directly to the customer outside the state when completed. However, the customer later requested that the taxpayer ship the unit to an electrical company in California for the purpose of adding electrical components to the unit. The electrical company then shipped the unit out of state.

Since the unit was delivered in California per customer's instructions, the sale took place in California and was subject to sales tax. 11/15/90.