So. San Francisco v. Bd. of Equalization
Annotate this CaseThe State Board of Equalization (SBE) interprets the Uniform Local Sales and Use Tax Law 7200 and the California Sales and Use Tax Law 6001 so that retail sales of tangible personal property stored, used, or consumed in California are subject to state sales tax when a California business is involved in the sale and title passes to the customer in California. If these conditions are not satisfied, the sale is subject to a use tax. Sales subject to state sales tax are subject to local sales tax; if state use tax applies, local use tax applies. Local sales tax revenue goes to the city where the sale was consummated while local use tax revenue is distributed out of a countywide pool. The city in which the sale was transacted usually receives less when use tax is imposed. Cities sued, claiming that all sales negotiated in a business in their city should be subject to local sales tax, even when the item is shipped from out of state to the consumer and the transaction is, therefore, subject to state use tax. The trial court agreed with the cities, but denied retroactive relief. The court of appeal reversed, in favor of SBE’s use of the Uniform Commercial Code to determine when title passed.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.