No additional permits are required for warehouses or other places at which merchandise is merely stored and which customers do not customarily visit for the purpose of making purchases and which are maintained in conjunction with a place of business for which a permit is held; but at least one permit must be held by every person maintaining stocks of merchandise in this state for sale. However, permits are required for warehouses or other places at which merchandise is stored and from which retail sales of such merchandise negotiated out-of-state are delivered or fulfilled.
If two or more activities are conducted by the same person on the same premises, even though in different buildings, only one seller's permit is required. For example, a service station operator having a restaurant in addition to the station on the same premises requires only one seller's permit for both activities.
If a seller of hay is also the grower of the hay, this exemption shall apply only if either:
* Appears to the public to be a business separate and autonomous from the prime retailer. Examples of businesses that may appear to be separate and autonomous, while operating within the prime retailer's premises, are those with signs posted on the premises naming each of such businesses, those with separate cash registers, and those with their own receipts or invoices printed with their business name.
* Maintains separate business records, particularly with respect to sales.
* Establishes his or her own selling prices.
* Makes business decisions independently, such as hiring employees or purchasing inventory and supplies.
* Registers as a separate business with other regulatory agencies, such as an agency issuing business licenses, the Employment Development Department, and/or the Secretary of State.
* Deposits funds into a separate account.
In cases where a retailer is not operating as a concessionaire, the prime retailer is not liable for any tax liabilities of the retailer operating on his or her premises. However, if a retailer is deemed to be operating as a concessionaire, the prime retailer may be held jointly and severally liable for any sales and use taxes imposed on unreported retail sales made by the concessionaire while operating as a concessionaire. Such a prime retailer will be relieved of his or her obligation for sales and use tax liabilities incurred by such a concessionaire for the period in which the concessionaire holds a seller's permit for the location of the prime retailer or in cases where the prime retailer obtains and retains a written statement that is taken in good faith in which the concessionaire affirms that he or she holds a seller's permit for that location with the Board. The following essential elements must be included in the statement in order to relieve the prime retailer of his or her liability for any unreported tax liabilities incurred by the concessionaire:
* The seller's permit number of the concessionaire
* The location for which the permit is issued (must show the concessionaire's location within the perimeter of the prime retailer's location).
* Signature of the concessionaire
* Date
While any statement, taken timely, in good faith and containing all of these essential elements will relieve a prime retailer of his or her liability for the unreported sales or use taxes of a concessionaire, a suggested format of an acceptable statement is provided as Appendix A to this regulation. While not required, it is suggested that the statement from the concessionaire contain language to clarify which party will be responsible for reporting and remitting the sales and/or use tax due on his or her retail sales.
In instances where the lessor, or grantor of permission to occupy space, is not a retailer himself or herself, he or she is not liable for any sales or use taxes owed by his or her lessee or grantee. In instances where an independent retailer leases space from another retailer, or occupies space by virtue of the granting of permission by another retailer, but does not operate his or her business within the perimeter of the lessor's or grantor's own retail business, such an independent retailer is not a concessionaire within the meaning of this regulation. In this case, the lessor or grantor is not liable for any sales or use taxes owned by the lessee or grantee.
The return must show the total sales price of the tangible personal property purchased by the qualified purchaser, the storage, use, or other consumption of which became subject to the use tax during the preceding calendar year, for which the qualified purchaser did not pay tax to a retailer required to collect the tax or a retailer the qualified purchaser reasonably believed was required to collect the tax. Notwithstanding Revenue and Taxation Code sections 6451, 6452, 6452.1, and 6455, the returns for the 2009 calendar year and subsequent years shall be filed with the Board, together with a remittance of the amount of the tax due, on or before April 15 of the succeeding calendar year.
Cal. Code Regs. Tit. 18, § 1699
2. New subsection (f) filed 5-25-77; effective thirtieth day thereafter (Register 77, No. 22).
3. Amendment of subsection (e)(2) filed 5-1-85; effective thirtieth day thereafter (Register 85, No. 18).
4. Change without regulatory effect amending subsections (a), (c), (e), (e)(2) and NOTE filed 6-22-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 25).
5. Change without regulatory effect adding subsections (c)-(c)2., relettering subsections and amending NOTE filed 4-25-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 17).
6. Amendment of section and new Appendix A filed 8-8-2001; operative 9-7-2001 (Register 2001, No. 32).
7. New subsections (h)-(i) filed 5-15-2002; operative 6-14-2002 (Register 2002, No. 20).
8. Amendment of subsection (a) filed 11-13-2006; operative 12-13-2006 (Register 2006, No. 46).
9. Amendment of subsection (f) filed 1-24-2008; operative 2-23-2008 (Register 2008, No. 4).
10. Change without regulatory effect amending section and NOTE filed 3-17-2010 pursuant to section 100, title 1, California Code of Regulations (Register 2010, No. 12).
11. New subsections (g)-(g)(6), subsection relettering and amendment of NOTE filed 5-13-2014; operative 7-1-2014 (Register 2014, No. 20).
Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Sections 6066, 6067, 6070, 6070.5, 6071.1, 6072, 6073, 6075 and 6225, Revenue and Taxation Code.
2. New subsection (f) filed 5-25-77; effective thirtieth day thereafter (Register 77, No. 22).
3. Amendment of subsection (e)(2) filed 5-1-85; effective thirtieth day thereafter (Register 85, No. 18).
4. Change without regulatory effect amending subsections (a), (c), (e), (e)(2) and Note filed 6-22-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 25).
5. Change without regulatory effect adding subsections (c)-(c)2., relettering subsections and amending Note filed 4-25-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 17).
6. Amendment of section and new Appendix A filed 8-8-2001; operative 9-7-2001 (Register 2001, No. 32).
7. New subsections (h)-(i) filed 5-15-2002; operative 6-14-2002 (Register 2002, No. 20).
8. Amendment of subsection (a) filed 11-13-2006; operative 12-13-2006 (Register 2006, No. 46).
9. Amendment of subsection (f) filed 1-24-2008; operative 2-23-2008 (Register 2008, No. 4).
10. Change without regulatory effect amending section and Note filed 3-17-2010 pursuant to section 100, title 1, California Code of Regulations (Register 2010, No. 12).
11. New subsections (g)-(g)(6), subsection relettering and amendment of Note filed 5-13-2014; operative 7/1/2014 (Register 2014, No. 20).