Sales of Counterfeit Goods Taxable in California

Oct 9th, 2015

Effective January 1, 2016, California's definition of "retail sale" will include sales by a person convicted of selling tangible personal property with a "counterfeit label" or an "illicit label." California already defined "retail sales" to include sales by convicted sellers of items with "counterfeit marks" on the items. This means that these sales cannot be made tax-free as sales for resale. This new amendment means that more kinds of counterfeit goods cannot be sold tax-free for resale.