California has amended a sales and use tax regulation regarding U.S. government supply contracts. The amended regulation provides that the term “retail sale” means a sale for any purpose other than resale in the regular course of business and provides an exemption from sales tax for gross receipts from the sale of tangible personal property to the United States. The amendments make the regulation consistent with 2007 amendments to the Federal Acquisition Regulation codified in the Code of Federal Regulations. The amendments also clarify the requirements for making sales for resale of direct and indirect consumable supplies, including overhead materials to the United States government. (Reg. 1618, California State Board of Equalization, effective September 6, 2012)