Ezel / Tax Rulings / CA

Would an advertised price including shipping and sales tax 'where applicable' imply tax reimbursement on exempt out-of-state shipments?

Short answer No. California said the 'where applicable' qualification was sufficient to avoid treating the price as tax reimbursement on nontaxable out-of-state sales.
State
CA
Ruling
Annotation 460.0245
Tax type
Sales and Use Tax
Issued
1976-03-30
Issued by
California State Board of Equalization
Requested by
A California seller proposing national magazine advertisements for shipped goods
Topics
advertising tax included price shipment excess tax reimbursement
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1976. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1976
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This 1976 staff letter addressed one proposed magazine advertisement for goods shipped to California and out-of-state customers. It decided only whether the quoted 'where applicable' wording implied reimbursement on nontaxable interstate shipments. Current advertising, sourcing, shipping, nexus, reimbursement, and exemption rules control today.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

A California seller planned to advertise redworms in national magazines at a price that “includes shipping and sales tax where applicable.” California said that qualification was sufficient to avoid a conclusion that the seller collected sales-tax reimbursement on nontaxable sales shipped by contract to out-of-state customers.

The result turned on the words “where applicable”: the advertisement did not represent that every shipment included California sales-tax reimbursement.

Common questions

Did the quoted advertisement imply tax on exempt out-of-state sales?

No.

What wording mattered?

“California sales tax where applicable.”

Did the letter decide whether every out-of-state shipment was exempt?

No. It addressed the reimbursement implication for shipments described as nontaxable.

Citations and references

  • The source cites no specific statute, regulation, or case.

Source

Original ruling text

460.0245

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
(916) 445-2705

March 30, 1976

Mr. R--- W. M--XXXXX --- --- Road
--- ---, CA XXXXX
Dear Mr. M---n:
This is in response to your letter of March 14 asking about your proposed advertisements in Field and Stream and Outdoor Life. You intend to advertise “Large Redworms $6.00 lb. Price includes shipping and sales Tax where applicable. S--- B--F--- XXXXX --- --- Rd. -----, Calif. XXXXX” The statement “Price includes shipping and California sales tax where applicable” is sufficient to prevent a conclusion that you are collecting sales tax reimbursement on nontaxable sales involving shipments pursuant to contract to out-of-state customers. If you have any further questions or comments on this matter, please do not hesitate to write to me directly at the above address. Very truly yours,

Philip R. Dougherty
Tax Counsel

PRD:ja

What does the law say today, for your facts?

This ruling is from 1976. Ezel checks current California tax law against your situation and cites the authority it relies on.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace