Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
105.0000 AIRCRAFT—Regulation 1593
105.0011 Aircraft Sales by Nondealers. The Federal Deposit Insurance Corporation (FDIC) is selling three aircraft which have been foreclosed and repossessed by FDIC acting as a receiver on behalf of Corporation A. Two of the aircraft are being sold to a Hong Kong corporation and the other will be sold to a Canadian airline. The drafted sales agreements for these aircraft provide that transfer of possession and title will occur at a California airport where they are currently stored. Employees or representatives of the respective purchasers will be responsible for piloting the aircraft to their intended destination.
Since the FDIC is not a dealer of aircraft, the applicable tax would be use tax, which is imposed on the purchaser. Because the aircraft are subject to the use tax, acceptance of delivery in California may not subject the purchase of the aircraft to use tax if the aircraft is transported outside the state for use solely outside California. 1/31/96.