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 325.0782

(c) Shipments from California to Points Outside State

(3) Installation in State Generally

325.0782 Sale of Slide-In Camper to Foreign Purchaser. A Canadian purchased a slide-in camper from a retailer in this state which was installed on the purchaser's truck. The purchaser then returned with the camper to Canada.

There are two notable exemptions from tax for sales of property to persons for use outside this state:

Section 6396 provides an exemption from sales tax from sale of tangible personal property when the contract of sales requires the retailer to ship the property to a point outside this state, and the retailer does ship the property to the out-of-state point by the retailer's facilities or by delivery to a carrier for that shipment. Since the retailer of the camper did not ship the property to an out-of-state point, the exemption does not apply to this sale.

Section 6366.2 provides for an exemption from tax for the sale and use of a new motor vehicle sold to a purchaser who is a resident of a foreign country and who arranges for the purchase through an authorized vehicle dealer in the foreign country prior to arriving in the United States if the following conditions are met. First, the purchaser must obtain an in-transit permit pursuant to California Vehicle Code section 6700.1. Second, before the in-transit permit expires, the retailer must ship or drive the motor vehicle to a point outside the United States. Since the slide-in camper is not a new motor vehicle, its sale could not qualify for exemption under section 6366.2. 2/27/97.