Pope

We consider whether the sale of a motor home by a California dealer is exempt from sales tax under section 6396 of the Revenue and Taxation Code where the contract of sale requires shipment of the motor home out of state, where it is delivered by the retailer to a forwarding agent and removed to a point out of state, but where the vehicle is driven from the state by the purchaser. We conclude under such circumstances the exemption does not apply and the tax is owed.

I

Facts and Procedural History

Edker L. Pope is a California retail motor home dealer doing business as Traveland. Pope made sales to out-of-state residents but did not pay sales tax on the transactions, believing they were exempt under section 6396. Fifty-nine such sales are the subject of the present case. After an audit the State Board of Equalization (Board) concluded the sales were not exempt and sought payment of sales taxes it believed were owed by Pope. Pope made partial payments and sought refunds of amounts paid. Pope also filed complaints seeking recovery of the partial payments; the Board cross-complained to recover the balance of the unpaid taxes. All actions were consolidated.

Both parties…