California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 4 - Sales and Use Tax › Article 20 - Transactions (Sales) and Use Taxes › Section 1823 - Application of Transactions (Sales) Tax and Use Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Transactions (Sales) Tax.
(1) In General. Except as stated below, in
				  any case in which state sales tax is applicable, state-administered
				  transactions (sales) tax is also applicable, if the place of sale is in a
				  district imposing such a tax. In any case in which state sales tax is
				  inapplicable, state-administered transactions (sales) tax is also inapplicable.
				  Thus, if title to the property sold passes to the purchaser at a point outside
				  this state, state-administered transactions (sales) tax does not apply
				  regardless of participation in the transaction by a California retailer. As
				  explained in paragraph (b), the use tax may apply. If so and if the retailer is
				  engaged in business in the taxing jurisdiction, he is required to collect the
				  use tax and pay it to the board when the retailer ships or delivers the
				  property sold into the district or participates within the district in making
				  the sale. Additionally, on and after January 1, 1988, any retailer of vehicles
				  subject to registration pursuant to Chapter 1 (commencing with Section
				  4000) of Division 3 of the Vehicle
				  Code, aircraft licensed in compliance with Section
				  21411
				  of the Public Utilities Code, or undocumented vessels registered under Division
				  3.5 (commencing with Section
				  9840) of the Vehicle Code, is a
				  retailer engaged in business in any district where a transactions (sales) and
				  use tax is imposed and is required to collect the use tax from the purchaser
				  and pay it to the board when the vehicle, aircraft or undocumented vessel is
				  registered or licensed in that district.
Gross receipts from sales of tangible personal property
					 subject to the transactions (sales) tax shall include delivery charges, when
					 such charges are subject to the state sales or use tax.
(2) Exceptions. State-administered
				  transactions (sales) tax does not apply to gross receipts from sales of
				  tangible personal property:
(A) To certain
				  operators of aircraft common carriers to be used or consumed directly and
				  exclusively in the operation of such aircraft common carriers and principally
				  outside the county of sale;
(B) To
				  be used outside the district when the property sold is shipped to a point
				  outside the district pursuant to the contract of sale, by delivery to such
				  point by the retailer or his agent, or by delivery by the retailer to a carrier
				  for shipment to a consignee at such point. If the purchaser uses the property
				  in a district imposing transactions (sales) and use taxes, the use tax may
				  apply;
(C) If the seller is
				  obligated to furnish the property for a fixed price pursuant to a contract
				  entered into prior to the operative date of the ordinance imposing the
				  transactions (sales) and use taxes; or
(D) Which are continuing sales of such
				  property under a lease of such property, if the lessor is obligated to lease
				  the property for an amount fixed by the lease prior to the operative date of
				  the ordinance imposing the transactions (sales) and use
				  taxes.