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BTLG Table of Contents > Uniform Local Sales and Use Tax Annotations > 700.0000 Application of Tax > Annotation 700.0070

Uniform Local Sales and Use Tax Annotations

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700.0000 Application of Tax—Regulation 1803

Annotation 700.0070

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700.0070 Duty to Collect. A free weekly publication, which does not qualify as a newspaper, is printed in Solano County, pursuant to a contract. The printer ships the printed paper to the publisher in San Francisco County by means of its own facilities.

First of all, under certain conditions the paper may qualify for the "printed sales message" exemption. If this is the case, the printing sales to the publisher are exempt from tax.

Second, the printer, as the retailer is responsible for the sales tax, but may collect sales tax reimbursement from the purchaser pursuant to agreement. The purchaser owes the district use tax which the retailer may have a duty to collect. The printer makes its sales in Solano County, outside of any taxing district and is responsible for sales tax at the statewide rate. The giving away of tangible personal property constitutes a taxable use of such property which occurs where the donation is made, in this case, the county of San Francisco. Since the purchaser is liable for use tax, the publisher owes the use tax. If the printer makes sufficient deliveries into San Francisco County, or has sales agents or other representatives there, the printer has a duty to collect such use taxes, measured by its charges. 9/9/91.