For sales and use tax purposes, when does a sale take place?

The correct answer is that a sale takes place on the date of actual transfer of title and possession. This is significant in the context of sales and use tax because it marks the point at which the buyer takes ownership of the property and the seller relinquishes control. According to tax regulations, the obligation to collect sales tax generally arises at the moment the buyer acquires the right to use and control the manufactured home, which occurs at the transfer of title and possession.

This timing is crucial because it aligns with the principle that sales tax is assessed only when a buyer has definitive ownership over a good, rather than when merely signing a contract, making a payment, or upon delivery. Therefore, the transfer of title and possession represents the legal point of sale in the eyes of tax authorities, establishing the buyer's liability for the sales tax due on the transaction.