Did a donor owe California use tax on advertising gifts deposited in the mail outside California for in-state recipients?

Plain-English summary

Board staff researched when delivery and title passage occurred for an advertising gift sent through the mail.

The memorandum concluded that depositing a gift in the mail constituted delivery to the recipient and passed title at that time.

When the advertising material was mailed outside California to a California donee, title therefore passed at the out-of-state mailing point. Under that reasoning, the donor did not owe California use tax on the property.

Citations and references

• The source memorandum cites no statute, regulation, or case by name.
• July 6 memorandum — question referenced; year, author, copy, and attachments not supplied
• A. K. Marshall's recent research — conclusion described; date, cited authority, analysis, and research record not reproduced in the official PDF
• Advertising material deposited in out-of-state mail and addressed to California donees — stated fact pattern; donor identity, material, acquisition, mailing dates and locations, recipients, postage, delivery, and title documents not reproduced in the official PDF
• Official Annotation 280.0360's out-of-state mailing, title-passage, and donor-use-tax conclusion — annotation supplies no additional inquiry, research authority, mailing, title, delivery, or implementation record
• Possible later mailing, return filing, audit, assessment, payment, refund claim, appeal, or other agency action — not supplied in the official PDF

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 280.0360
• Original supporting opinion: 280.0360 PDF

Original ruling text

STATE BOARD OF EQUALIZATION
OFFICE CORRESPONDENCE

280.0360
Place:
Date:

To:

Mr. --- ---

From:

E. H. Stetson

Re:

Applicability of Use Tax to Advertising Material

Sacramento, California
July 18, 1950

In answer to your memo of July 6 we advise that recent research by Mr. A. K. Marshall, Associate Tax Counsel, indicates quite definitely that the deposit of a gift in the mails constitute delivery of the gift to the donee, title passing at that time. Accordingly, it is our position that where advertising material is placed in the mails at a point outside this State, addressed to donees in this State, that title passes at the out-of-state point and that, therefore, the donor is not liable for use tax with respect to such property.

EHS:ph