Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY
570.1040 Aircraft Parts and Engines. With respect to aircraft parts and engines transferred from a maintenance base in California and installed on aircraft outside this state, which aircraft are subsequently used in this state in both interstate and intrastate commerce, the use tax applies if the parts and engines were purchased for use whenever and wherever (including California) such items would be needed and were actually used in California in either interstate or intrastate operations, or both.
If the aircraft on which the parts and engines were installed are not used in California within 6 months from the date the parts and engines were transferred out-of-state, the parts and engines, will be considered as exempt from the use tax under section 6009.1, provided, however, the aircraft with the parts and engines installed therein are actually substantially used in revenue or company service outside this state within the 6-month period.
The mere holding of the parts and engines for standby or emergency purposes for 6 months or more outside this state does not exempt the initial storage or retention in California from the use tax. 2/3/66.