Were mobilehome sales to the United States or retailer-delivered out-of-state destinations exempt under the legislation effective July 1, 1980?

Plain-English summary

Staff considered the mobilehome legislation effective July 1, 1980. Sections 6012.8 and 6012.9 treated the retailer as the consumer only when the retailer's sale would otherwise have been subject to sales tax.

A mobilehome sale to the United States would otherwise be exempt, so the seller remained the retailer and the section 6381 federal-sale exemption applied.

The same reasoning exempted a mobilehome sale when the retailer was required to, and did, ship it outside California using the retailer's facilities or a common or contract carrier.

What this means for you

Mobilehome retailers

The historical retailer-as-consumer rule did not override exemptions for federal sales or qualifying out-of-state shipment.

Accountants and tax professionals

Confirm the purchaser, contractual delivery requirement, destination, and who arranged shipment. The short memorandum did not address other mobilehome transactions.

Common questions

Q: Was a mobilehome sale to the United States exempt?

A: Yes, under section 6381.

Q: Why was the retailer not treated as the consumer?

A: Sections 6012.8 and 6012.9 applied that treatment only when the retailer's sale would otherwise be taxable.

Q: Did an out-of-state sale also qualify?

A: Yes, when the retailer was required to ship and actually shipped the mobilehome outside California.

Q: What shipment methods did the memorandum identify?

A: The retailer's own facilities or a common or contract carrier.

Citations and references

• California Revenue and Taxation Code §§ 6012.8, 6012.9, and 6381

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 585.0110
• Original supporting opinion: 585.0110 PDF

Original ruling text

State of California

Board of Equalization

Memorandum

585.0110

To:

Mr. W. D. Dunn

From:

D. J. Hennessy

Subject:

Mobilehomes

Date:

October 24, 1980

The question has arisen whether under the mobilehome legislation effective July 1, 1980, a sale of a mobilehome to the United States would be within the exemption provided by Section 6381. We have concluded that the exemption would apply. Our conclusion is based on Sections 6012.8 and 6012.9, as amended, which state that “The retailer shall be considered to be the consumer for purposes of this part if the sale by the retailer would otherwise have been subject to sales tax…” As the sale of the mobilehome to the United State would not otherwise have been taxable, the seller of the mobilehome is the retailer, and the exemption of Section 6381 applies. The same rationale would exempt sales of mobilehomes which the retailer is required to, and does, ship to a point outside California by means of his own facilities or common or contract carrier.

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cc:

G. J. Jugum
W. E. Burkett
J. H. Murray
D. F. Brady