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Business Taxes Law Guide—Revision 2024
Transactions and Use Tax Annotations
800.0000 Application of Transactions (Sales) Tax and Use Tax—Regulation 1823
Annotation 800.0004
800.0004 Deliveries Out of District and Use in District. Normally, the retailer is entitled to assume that the place of use is the place where the purchaser resides. If the customer's business address is located outside a district, the retailer is entitled to assume that the tangible personal property is not purchased for use in a district. On the other hand, if a customer's address is within a district, under section 6247 a retailer engaged in business in that district must collect its use tax unless the retailer obtains a statement from the purchaser that the property was purchased for use outside the district. Regardless of where the customer's business address is located, if the retailer knows, or has reason to know, that the property will be used in a district, such as by the delivery address, the retailer must collect the use tax in effect in the district where the property is actually used if the retailer is engaged in business there.
As a result, when a retailer located in Sacramento County delivers chemicals to farmers or crop dusters located in a nontaxing district, the district tax will not apply. However, if the farmer or crop duster uses the chemicals on a farm located in the taxing district, the farmer or crop duster will be liable for the district use tax. 6/6/89; 6/10/03. (Am. 2004–1).