Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2017

Sales and Use Tax Annotations

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105.0000 AIRCRAFT—Regulation 1593

Annotation 105.0260

105.0260 Simultaneous Transactions. An aircraft manufacturer sells a plane to Company A, with delivery in California. Company A simultaneously leases the aircraft to Company B, a Nevada Corporation. Company B simultaneously leases it to C, who is a common carrier. Since there is no intervening use of the aircraft, the transactions would come within the exemption provided by section 6366.1. The parties should obtain and retain for their records exemption certificates, from the other parties involved, to support that the sale and lease of the aircraft is not subject to tax. 4/5/88.