Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
105.0000 AIRCRAFT—Regulation 1593
105.0009 Aircraft—Purchaser Liable for Sales Tax. A dealer regarded its sale of an aircraft to a nonresident of California to be exempt from sales tax based on a certificate in the form prescribed by subdivision (e) of Regulation 1593 issued by the nonresident purchaser. This exemption applies to a purchase of an aircraft by a nonresident of California who will not use the aircraft in this state other than to remove the aircraft from California. Since the purchaser certified to the dealer that the aircraft would be used in a manner entitling the dealer to regard the sale as exempt, the purchaser is liable for sales tax if he uses the aircraft in some other manner or for some other purpose. (Regulation 1667 (b)(3).)
The aircraft was removed from this state, but was returned within 12 months for repairs and servicing. Subdivision (d)(1) of Regulation 1593 provides that the exemption is not affected if the aircraft is returned to California within 12 months from its removal, if the purpose is solely for repair or service covered by warranty. Accordingly, if the aircraft returned to California solely for repair or service covered by warranty, the exemption will not be affected by the presence of the aircraft in California for that purpose. However, if the aircraft returned to California for any other purpose, the exemption is forfeited and the nonresident purchaser owes sales tax on the sales price of the aircraft paid to the dealer. 8/30/01; 3/12/02. (Am. 2002–3).