Ezel / Tax Rulings / CA

Was cash-register receipt paper sold to a store operator purchased for resale because customers received printed receipts?

Short answer No. The store primarily used the paper in its accounting and cash-control system, so the paper sale was a taxable retail sale.
State
CA
Ruling
Annotation 570.0320
Tax type
Sales and Use Tax
Issued
1954-04-21
Issued by
California State Board of Equalization
Requested by
An inquirer asking about receipt paper sold to a store operator
Topics
accounting systems resale exemption sales tax
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1954. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1954
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 April 21, 1954 opinion concerns plain paper rolls cut for cash registers and printed with the seller's name and transaction amount. Its conclusion turns on the store operator's primary accounting and internal cash-control use. Current resale and sales-tax rules control.
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 supplier asked whether sales tax applied when it sold store operators plain paper rolls cut for cash registers. The register printed the seller's name and transaction amount on the paper, and customers received the resulting receipts.

California found the paper was not bought for resale. The store primarily used it as part of its accounting system and internal cash control, so the supplier's sale to the store was a taxable retail sale.

Common questions

Did handing the printed receipt to a customer make the paper resold?

No. The source treated the store's accounting and cash-control function as the primary use.

What kind of paper was involved?

Plain paper rolls slit to fit cash registers and printed during each transaction.

Source

Original ruling text

570.0320

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

April 21, 1954

Gentlemen:
You inquire concerning the application of sales tax to the sale to a store operator of receipt paper. Receipt paper is a plain paper roll slit to fit a cash register and upon which is printed the vendor’s name and the amount of the transaction. It is the receipts which are given to the customer upon the purchase of merchandise. The sales tax applies to retail sales of tangible personal property. A retail sale is defined as a sale for any purpose other than resale in the regular course of business. It is our opinion that the store operator is using the receipt paper as a part of his accounting system and primarily for the internal control of cash. Accordingly, the receipt paper is purchased for some purpose other than resale in the regular course of business and the sale in question is at retail and therefore subject to the tax. Yours very truly,

Bill Holden
Assistant Counsel

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