D.C. Mun. Regs. tit. 9, r. 9-404

Current through Register Vol. 71, No. 50, December 13, 2024

Rule 9-404 - INTERSTATE COMMERCE

404.1

The sales tax shall be applicable to the receipts from all sales even though the property sold and delivered in the District is for exclusive use in interstate commerce.

404.2

Receipts from the sale of tangible personal property for use in conducting a business which constitutes interstate commerce shall not be exempt from the tax solely by reason of that fact.

404.3

Receipts from the sale of tangible personal property in the District shall not be exempt by reason of the fact that the vendor delivered the property from outside the District, if the facts and circumstances indicate that the contract of sale would not require, contemplate, or necessarily involve the shipment of goods from outside the District.

404.4

If a registered vendor in the District undertakes to and does, in fact, deliver the property sold to the purchaser outside the District, and consideration for that delivery is included in the sales price as part of the retail sale, the gross receipts from the sale are exempt from the tax unless the property sold is for use, storage, or consumption in the District.

404.5

If a registered vendor in the District undertakes to, and does in fact, deliver the property sold to a resident of the District to a place outside the District and that property is returned to the District by the purchaser, the purchaser shall be liable for a use tax on the purchase price of the property.

404.6

If a registered vendor in the District which has no subsidiary or agent; or office, branch, place of distribution, sample room, or sales place; or warehouse or storage place; or other place of business outside the District undertakes to, and does in fact, deliver the property sold to a place outside the District under circumstances other than those set forth in § 404.4 or 404.5, the question of whether that vendor is subject to the sales tax upon the gross receipts from the sale must be resolved by a determination of whether or not the sale was in fact an interstate transaction.

404.7

Among the criteria for determining whether a transaction was an interstate transaction for the purposes of § 404.6, are the following:

(a) Whether the vendor was licensed to engage in business in the jurisdiction to which the property was delivered by that vendor;

(b) Whether the vendor had, in connection with the business, during the taxable period, filed any liens, chattel mortgages, or additional sales contracts in the jurisdiction to which the property was delivered by that vendor;

(c) Whether the sale was C.O.D. at the place outside the District to which the property was delivered by the vendor;

(d) Whether the property was actually delivered by the vendor in its own equipment or was delivered through a common, private, or contract carrier paid by the vendor; and

(e) Whether payment for the property sold was made by the purchaser at the place of business of the vendor within the District.

D.C. Mun. Regs. tit. 9, r. 9-404

Commissioners' Order 54-1415, 1 DCR 4 (July 19, 1954)