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 6 - Specific Business Engaged in Retailing › Section 1574 - Vending Machine Operators

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  General.
(1) Permits. Persons operating
				  vending machines dispensing tangible personal property of a kind the gross
				  receipts from the retail sale of which are subject to tax or dispensing food
				  products at retail for more than 15 cents must obtain permits to engage in the
				  business of selling tangible personal property. One permit is sufficient for
				  all machines of one operator.
A statement in substantially the following form must be
					 affixed upon each vending machine in a conspicuous place:
___________________________
"This vending machine is operated by
___________________________
Name of Operator
___________________________
Address of Operator
___________________________
who holds Permit No.
issued pursuant to the Sales and Use Tax
					 Law."
(2) Records. Adequate
				  and complete records must be kept by the operator showing the location or
				  locations of each machine operated by him or her, the serial number thereof,
				  purchases and inventories of merchandise bought for sale through all such
				  machines, the prices charged by the operator, the gross receipts derived from
				  the operation at each location, the receipts from exempt sales, and where
				  applicable, the sales price to the operator of all tangible personal property
				  of which the operator is the consumer, see subdivision (b). Records must be
				  kept of the receipts derived from each machine at a location if differing kinds
				  of merchandise are vended through separate machines at that location.
(3) Schedule Showing Allocation by County. If
				  the machines are operated in more than one county, a schedule must be attached
				  to the return showing the tax allocable to each county. If a person purchases
				  property under a resale certificate and dispenses it through a vending machine
				  under circumstances where the person is considered to be the consumer of the
				  property, see subdivision (b), a schedule must be attached to the return
				  showing the use tax due thereon allocable to each county.
(4) Sales to Operators Not Furnishing Resale
				  Certificates. Persons making sales of tangible personal property of a kind the
				  gross receipts from the retail sale of which are taxable, to operators of
				  vending machines to be resold through such machines, must notify this board of
				  the name and address of each operator who fails to furnish a valid resale
				  certificate. In the event such persons fail to so notify the board, or desire
				  to assume tax liability for the operations of particular vending machines,
				  then, pursuant to Revenue and Taxation Code Section
				  6015,
				  they are required to return the tax to the state, measured by the receipts from
				  the retail sale of the property.