§ 1701. “Tax-Paid Purchases Resold.”
18 CA ADC § 1701Barclays Official California Code of Regulations
18 CCR § 1701
§ 1701. “Tax-Paid Purchases Resold.”
(a) Procedure in General. A retailer who resells tangible personal property before making any use thereof (other than retention, demonstration or display while holding it for sale in the regular course of business) may take a deduction of the purchase price of the property if, with respect to its purchase, he has reimbursed his vendor for the sales tax or has paid the use tax. If such a deduction is taken by the retailer, no refund or credit will be allowed to his vendor with respect to the sale of the property.
The deduction under the caption “Tax-paid purchases resold” must be taken on the retailer's return in which his sale of the property is included. If the deduction is not taken in the proper quarter, a claim for refund of tax must be filed.
(c) Particular Application. “Standby Service.” Property purchased “tax paid” by a retailer and placed in “Standby Service,” located at the place of intended use and committed to that use, is considered used sufficiently to preclude a tax-paid purchase deduction when sold, even though never physically used there and ultimately removed and sold.
Credits
Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Section 6012(a), Revenue and Taxation Code.
History
1. Amendment and renumbering of former Section 2071 filed 8-7-69; effective thirtieth day thereafter (Register 69, No. 32).
2. Amendment filed 9-6-83; effective thirtieth day thereafter (Register 83, No. 37).
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 18, § 1701, 18 CA ADC § 1701
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