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BTLG Table of Contents > Uniform Local Sales and Use Tax Annotations > 710.0000 Place of Sale for Purposes of Bradley-Burns Uniform Local Sales and Use Taxes > Annotation 710.0019

Uniform Local Sales and Use Tax Annotations

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710.0000 Place of Sale for Purposes of Bradley-Burns Uniform Local Sales and Use Taxes—Regulation 1802

Annotation 710.0019

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710.0019 Out-of-State Retailer-Shipment into California. Taxpayer is a retailer with several offices in California, one of which is in Orange County. The sales at issue were negotiated at or with the participation of the Orange County sales office. The goods were shipped from the taxpayer's out-of-state inventory. Under the sales agreement, "all deliveries are F.O.B. Destination." There was no title clause in the sales agreement.

Local tax follows the state tax. If the sales at issue are subject to state sales tax, they are subject to local sales tax. If subject to state use tax, then local use tax applies. Under Regulation 1620, sales tax applies since there is participation in the sale by a local office and the sale occurs in this state. Since there was no agreement as to when title passes and the property was shipped "F.O.B. Destination," title to the property passes at the time and place when the seller completes its performance with respect to physical delivery of the product.

Accordingly, the proper tax to be applied to such sales in which a local office participates and the sale occurs in this state (title passes in California) is the sales tax. Therefore, the local sales tax revenue derived from these sales should be allocated to the location where the Orange County office is located. 3/23/95.