Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Uniform Local Sales and Use Tax Annotations
700.0000 APPLICATION OF TAX—Regulation 1803
700.0176 Los Angeles Municipal Code Section (MC) 63.92.1 Tax. MC section 63.92.1 imposes a business license tax for the privilege of storing fuel products at the Los Angeles Airport. The incidence of the tax is on the person providing the fuel products at the airport (exercising the privilege) and not the user of the product. The state and local use tax is measured by the sales price of the property (section 6201), whereas the MC tax is measured by the amount of product stored. The measure of tax is not determinative of its nature but is given some weight in the analysis. (Weekes v. City of Oakland (1978) 21 Cal.3d 386, 397–398.)
Finally, the revenues derived from this tax do not go into Los Angeles' General Fund but into a special fund for the airport. Thus, under the above authority, the tax levied by MC 623.92.1 is not substantially similar to a local use tax and so does not violate section 7203.5. 2/29/96.