Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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105.0000 AIRCRAFT—Regulation 1593

Annotation 105.0290

105.0290 Sublease to Common Carrier. An aircraft manufacturer has entered into a sales agreement for an aircraft with the stock holding company of common carriers X and Y. The stock holding company has assigned its rights under the agreement to a leasing company, a subsidiary of the aircraft manufacturer, which will purchase the aircraft from the manufacturer and lease it to the stock holding company. The stock holding company will sublease the aircraft to common carrier X which will in turn sublease the aircraft to common carrier Y. Common carrier Y will place the aircraft in commercial operation both within and without California.

This transaction qualifies for the aircraft exemption provided in section 6366.1. 6/28/85.