Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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500.0000 SALES TO COMMON CARRIERS—Regulation 1621

Annotation 500.0029

500.0029 Beverages Served by Foreign Air Carrier. Federal law does not preclude the application of the sales or use tax to sale of alcoholic beverages served to passengers as complimentary drinks or sold to passengers by a foreign air carrier while in flight over the state of California.

The fact that United States Custom directive No. 3200.04 accords duty free and tax free status for liquor consumed in flight does not preclude the application of the sales and use tax because the liquor had been removed from bond and was not otherwise exempt from state taxation at the time the taxable event occurred. 1/27/92.