![]() "Future" sales do not include present sales of tangible personal property for future delivery. If they do so, no sale happens and no tax applies. However, the seller and the buyer or their assignees may agree to cancel the contract before performance. If the title (or the possession in lieu of title) is later transferred, the sale happens, and tax applies unless the sale is otherwise exempt. The price of the goods is usually set at the time of contracting, but neither the title nor possession of the goods is then transferred. A contract to sell and buy goods in the future obligates the seller to sell and the buyer to buy goods at a particular time in the future. A sale happens if the option is exercised and tax applies unless otherwise exempt. "Options to sell" are contracts in which the buyer agrees to buy specified property, usually at a predetermined price, while the seller obtains the right but not the duty to sell the property. On the other hand, if the option is not exercised, no sale happens and no tax applies. ![]() A sale happens if the buyer exercises his or her option to purchase the property and tax applies at the time the option is exercised unless the sale is otherwise exempt. Accordingly, the "buyer" has the option to purchase the property but may decide not to purchase without breaching the contract. "Options to buy" are contracts in which the seller agrees to sell specified property, usually at a predetermined price, while the buyer obtains the right but not the duty to purchase the property. (b) Application of Tax to Specific Types of Transactions. Effective September 27, 1985, tax does not apply to the sale of or the storage, use, or other consumption in this state of commemorative "California Gold" medallions produced and sold in accordance with Chapter 25 (commencing with Section 7551) of Division 7 of Title 1 of the Government Code. (4) Sales of Commemorative "California Gold" Medallions. 1 et seq.) or not required to be registered under the Commodity Exchange Act. (B) The sale is by or through a person registered pursuant to the Commodity Exchange Act (7 U.S.C. For purposes of this regulation, market value means sales price as defined in Section 6011 of the Sales and Use Tax Law. For sales occurring on or after January 1, 2009, a sale in bulk occurs if the total market value of the monetized bullion, nonmonetized gold or silver bullion, and numismatic coins sold in a single transaction is $1,500 or more, or is equal to or exceeds the adjusted amount as computed by Revenue and Taxation Code Section 6355. For sales occurring on or before December 31, 2008, a sale in bulk occurs if the total market value of the monetized bullion, nonmonetized gold or silver bullion, and numismatic coins sold in a single transaction is $1,000 or more. Neither the sales tax nor the use tax applies to sales of "monetized bullion," nonmonetized gold or silver bullion, and numismatic coins provided the following conditions are met: Nonmonetized bullion means gold or silver which has been smelted or refined and has a value dependent primarily upon its gold or silver content and not upon its form. The medium of exchange must have had a legal status equivalent to legal tender.Įffective September 28, 1983, "monetized bullion" includes gold medallions struck under authority of the American Arts Gold Medallion Act (Title IV of Public Law 95-630). "Monetized bullion" means coins or other forms of money manufactured of gold, silver, or other metal and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation. The exemption for sales in bulk of nonmonetized gold or silver bullion and numismatic coins is effective with respect to sales occurring on and after January 1, 1986. Sales in bulk of "monetized bullion", nonmonetized gold or silver bullion, and numismatic coins which sales are substantially equivalent to transactions in securities or commodities through a national securities or commodities exchange, are exempt from both the sales tax and the use tax. (3) Sales in Bulk of Monetized Bullion, Nonmonetized Gold or Silver Bullion, and Numismatic Coins. Tax applies to sales of gold or silver bullion except as provided in subdivision (a)(3) below. On the other hand, tax does apply to sales of coins as collector's items or as an investment, except as otherwise specified in this regulation. For example, tax does not apply to a transaction whereby a coin changer returns only 95 cents on a dollar. The transfer of coins for use solely as a medium of exchange, i.e., as legal tender, is not subject to tax even though the transferee pays an amount exceeding the face amount.
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