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 325.0495

(c) Shipments from California to Points Outside State

(1) Generally

325.0495 Interstate Commerce. An out-of-state consumer contracts with a California fabricator to design and construct a trade show booth. The fabricator refers the consumer to another firm to make the components of the booth, and then deliver the components to the fabricator for assembly. After assembly, the modules are shipped out of California. The charges for the work performed by the firm making the components are subject to California sales tax. The contract between the consumer and the firm did not require interstate shipment, and in fact that company did not ship anything out of state, but rather delivered it to the California fabricator of the trade show booth. The California fabricator does not qualify as a "forwarding agent." 1/16/91.