Cal. Code Regs. Tit. 18, § 1629 - Goods Damaged in Transit

(a) Sales Tax. If damage to goods in transit to the consumer occurs after the "sale" as defined in section 6006 of the Revenue and Taxation Code is made, sales tax applies to the sale. If the damage occurs prior thereto, sales tax applies as follows:

(1) If the goods are destroyed, tax does not apply to damages paid the retailer for their destruction.

(2) If the goods are not destroyed, and are sold at retail in their damaged condition, tax applies to that portion of the total amount paid to the retailer representing the fair retail value of the goods in their damaged condition.

(b) Use Tax. Use tax does not apply with respect to goods destroyed before the purchaser makes any storage or use of the goods. If the goods are damaged but are nevertheless stored or used by the purchaser, tax applies to that portion of the total amount paid to the retailer representing the fair retail value of the goods in their damaged condition.

Notes

Cal. Code Regs. Tit. 18, § 1629

1. Renumbering of former Section 2029 filed 8-7-69; effective thirtieth day thereafter (Register 69, No. 32).

Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Sections 6006, 6010, Revenue and Taxation Code.

1. Renumbering of former Section 2029 filed 8-7-69; effective thirtieth day thereafter (Register 69, No. 32).