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 325.1785

(c) Shipments from California to Points Outside State

(8) Use Tax

325.1785 Tractor Dead-Headed to California. A carrier purchases tractors from a California truck dealer for use in hauling goods in interstate commerce. The tractors are delivered by the dealer in Las Vegas, Nevada, at the carrier's station in Nevada. Subsequently, a number of the tractors are used to haul loads from Las Vegas to Los Angeles. Others are driven empty from Las Vegas to Los Angeles where they picked up their first pay load. These tractors have been used thereafter continuously in interstate commerce.

When a vehicle is transported empty to pick up a load to be carried in interstate commerce, it is engaged in interstate commerce while traveling to pick up the specific load. Therefore, the trucks driven empty from Las Vegas to Los Angeles are not subject to the use tax since their first functional use occurs outside of California and they are then used continuously in interstate commerce both within and without California. 1/9/64.