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 500.0049

500.0049 Bunker Fuel. A company purchases fuel in this state. The fuel was used on a vessel which the company had obtained under a time charter with the owners. Under the time charter, the company was responsible for furnishing the fuel for the operation of the vessel.

The company did not purchase the fuel as agent for the vessel owner nor was the fuel purchased for resale. The fuel is best characterized as "customer furnished fuel." The sale of the fuel to the company does not qualify for the section 6385 exemption because it was not sold to a common carrier. Neither does it qualify as a sale in interstate commerce. The fuel was purchased for use in a voyage embarking from a California port and is subject to tax. 4/6/88.