Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
475.0000 RESALE CERTIFICATES—Regulation 1668
475.0215 Space Launch Vehicle. Company A is engaged in the business of designing, engineering, and manufacturing, among other items, space launch systems. Company B, a wholly owned subsidiary, is established to market and sell launch service programs to commercial customers. The services include the launch vehicle, launch operation, spacecraft integration, mission management, and post launch validation of spacecraft separation and orbit. Company B contracts with Company A for the purchase of the launch vehicle and for launch services. All contracts between Company B and Company A provide that Company A must deliver title to or possession of the launch vehicle to Company B out of state. All transportation charges are paid by Company A. Company A contracts with the U.S. Air Force to transport the vehicle out of state as no other carrier has the capability to move the vehicle.
Assuming the transaction between Company A and Company B is an arm's length transaction, Company A may issue resale certificates to its suppliers for property incorporated into the vehicle. Its sale to Company B would be exempt as a sale in interstate commerce. 10/4/93. (Am. 2002–2).