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 325.0980

(c) Shipments from California to Points Outside State

(4) Delayed Shipment; Use Prior to Shipment; "Bailee Clauses"

325.0980 Prints. A seller makes prints from a customer's negative film. The prints are delivered to the customer in California. Subsequently from within a few days to as long as two or three weeks later the customer returns the print to seller and requests seller to ship it out-of-state for his account and credit him for the sales tax reimbursement which seller charged when the customer originally picked up the print at seller's plant. Under these circumstances there has been a completed sale of the print in this state to customer and that the fact that he subsequently returns the print to seller, requesting him to ship it outside the state, does not prevent the sales tax from applying. It is only when the seller in fulfillment of the sales agreement delivers the goods to the purchaser at a point outside this state or to a carrier for shipment to the purchaser at a point outside this state that the tax is rendered inapplicable on the basis that the sale is one in interstate commerce. The delivery to the out-of-state point or to the carrier consigned to the out-of-state point must be the act that completes the sale transaction and not an act that occurs subsequent to the completion of the sale. 11/19/51.