City of South San Francisco v. Board of Equalization

Under the Board of Equalization’s (SBE) interpretation of the Revenue and Taxation Code, all retail sales of tangible personal property stored, used, or consumed in California are subject, with limited exceptions, to either a state sales or use tax. SBE applies a state sales tax when a California business is involved in the sale and title to the property passes to the customer in California. (See Rev. & Tax. Code, §§ 6006, subd. (a), 6010.5, 6051; Cal. U. Com. Code, § 2401, subd. (2).) If these two conditions are not satisfied, the sale is subject to a use tax. (See Rev. & Tax. Code, §§ 6201, 6202, 6203, 6401.)

For over 50 years SBE has interpreted the local sales and use tax law (the Bradley-Bums Uniform Local Sales and Use Tax Law (Bradley-Bums Act); § 7200 et seq.) as being consistent with section 6001 et seq., part of California’s Sales and Use Tax Law (the State Tax Law). Accordingly, it subjects the retail sale of personal property to a local sales tax whenever the state sales tax applies and subjects such a sale to a local use tax whenever the state use tax applies. (See Cal. Code Regs., tit. 18, § 1803.) Whether SBE administers a local sales or use tax has…