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 325.1715

(c) Shipments from California to Points Outside State

(8) Use Tax

See also, Use of Property in State and Use Tax Generally

325.1715 Artwork Displayed Outside California. A museum located in California purchased artwork from out-of-state sellers. The artwork was initially shipped to the museum so that the museum Board of Trustees could examine it prior to deciding whether to purchase. After purchase, the artwork was loaned to museums and galleries located outside the state for periods of three or more months prior to being returned to California for exhibition as part of the permanent collection of the museum.

The regulation establishes a presumption that property used outside the state for 90 days or more was not purchased for use in California. The presumption does not apply here because the artwork was in California at the time of its purchase by the museum. It is immaterial that payment was made after the artwork left the state. The museum is liable for use tax. 3/29/73.

(Note.— Subsequent statutory change re art purchases for museums.)