Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Uniform Local Sales and Use Tax Annotations

715.0000 AIRCRAFT COMMON CARRIERS AND WATERBORNE VESSELS—Regulation 1805

Annotation 715.0490

(c) AIRCRAFT COMMON CARRIERS AND WATERBORNE VESSELS

715.0490 Fuel Used in County of Purchase. A common carrier airline purchases jet fuel in California. If enough fuel is on board prior to California fueling to reach the first out-of-state landing point, all of the fuel purchased in California is exempt from state tax if the requirements of Regulation 1621 are met. If no state tax applies, then no local or district tax can apply.

If, however, only a portion of the sale of fuel was exempt from state tax (i.e., if there was not enough fuel on board prior to California fueling to reach the first out-of-state landing point), the amount of fuel subject to state sales tax will be the total amount of fuel consumed in reaching the first out-of-state landing point less the amount of fuel that was on hand when the aircraft landed in California. The amount subject to local and district sales tax is the amount of fuel sold and consumed in the county of sale (but this shall not exceed the amount subject to state tax). 3/26/79.