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 325.0663

(c) Shipments from California to Points Outside State

(2) Delivery to Purchaser in State

325.0663 Common Carrier Hired by Customer. An auctioneer makes sales to customers who hire common carriers to transport the property sold to points outside California. The bill-of-lading shows the customer as both the shipper and the receiver. The common carrier picks up the property at the auctioneer's location and delivers it to the customer's out-of-state location. The customer does not take physical possession of the property in this state.

If the contract of sale requires the property to be shipped out of the state, and if the customer is not known by the auctioneer to be a California resident, the auctioneer is not liable for sales tax or for collecting use tax from the customer. 5/12/94.