Deposits or prepayments on purchase price of tangible personal property

When retailers of tangible personal property accept deposits from customers for goods to which the purchaser obtains possession only upon payment of the full purchase price, if there is a contract to sell specific goods, title passes to the buyer when the parties to the contract intend it to be transferred, with consideration of the terms of the contract, the conduct of the parties, usage of trade, and the circumstances of the case. If the buyer makes a deposit on the purchase price of specific goods, and the seller assigns those goods to the sale, title to the goods passes and the sale is made at the time the contract is entered into irrespective of the fact that the full amount of the purchase price may not have been paid by the buyer. The prepayment or deposit must be included in the measure of the seller's tax at that time. If no specific goods are selected by the buyer or assigned to the sale by the seller, title to the goods does not pass until the buyer selects specific goods, and they are assigned to the sale by the seller. Here the seller merely acts as a depository of funds left with the seller by the buyer, and such prepayments or deposits are not receipts from a sale of tangible personal property until a sale is actually made. In such case, the sale takes place when possession of the goods is delivered to the buyer, and the seller must report as gross receipts from the sale the total amount of the purchase price as of the time of sale.