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 325.0611

(c) Shipments from California to Points Outside State

(1) Generally

325.0611 Printed Matter Mailed Out of State. An advertising agency which contracts to sell printed letters and mailers and directly mails them to out-of-state addresses is exempt from sales tax on such sales if the customer requires the agency to ship or mail them to the out-of-state addresses.

On the other hand, if an agency's agreement with the customer provides that the advertising agency is purchasing the printed matter as an agent for the customer, tax applies to the printer's charge since the printer would be making a retail sale of the printing in California. This is true whether or not the agency subsequently mailed the printed material out of state. 6/1/83.