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 325.0580

(c) Shipments from California to Points Outside State

(1) Generally

325.0580 Title Agreements. An out-of-state manufacturer purchased tooling from a California retailer pursuant to a purchase order which provided that the purchaser would take delivery from the retailer in California and would transport the tooling out-of-state, with title to pass to the purchaser after final acceptance at the out-of-state manufacturing plant.

Since the tooling was delivered by the seller to the purchaser in this state, the sale was made in this state and was subject to sales tax. The agreement that title was to pass subsequent to in-state delivery at a point outside this state was limited in effect to a reservation by the seller of a security interest in the goods sold and did not have the effect of rendering the transaction a sale at the out-of-state destination. 9/6/66.