Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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105.0000 AIRCRAFT—Regulation 1593

Annotation 105.0040

105.0040 Charter Flights. Whether a charter is involved depends solely on the degree of control retained by the owner. If possession and control of the property in question are not transferred to the purported lessee, then the transaction is not a lease. Rather, the purported lessor is actually using the property. Thus, if the aircraft owner will not "lease" the aircraft without providing a pilot who will maintain control of the aircraft during flight, then that flight is a charter and not a lease. Such an owner may not elect to pay tax on fair rental value because there is no lease and no rentals are paid. Entremont v. Whitsell (1939) 13 Cal.2d 290. 6/29/92.