Jet Fuel Tax Frequently Asked Questions (FAQs) - Filing Claims for Refund

  1. What kinds of jet fuel sales are exempt?
  2. Are there specific requirements to support exempt jet fuel sales to common carriers?

  1. What kinds of jet fuel sales are exempt?
    1. Sales of aircraft jet fuel for the propulsion of an aircraft are taxable except for sales of aircraft jet fuel to:
      1. An air common carrier engaged in the business of transporting people or property for hire or compensation under a certificate of public convenience and necessity issued under the authority of the laws of California, the United States, or any foreign government.
      2. A person engaged in the business of constructing or reconstructing by manufacture or assembly of completed aircraft, or modifying, overhauling, repairing, maintaining, or servicing of aircraft.
      3. The armed forces of the United States.
    2. Other Jet Fuel Dealers or nonusers who certify in writing that the fuel purchased will not be used to power an aircraft.

    See Regulation 1137 for additional information.

  2. Are there specific requirements to support exempt jet fuel sales to common carriers?

    Please see Regulation 1137. You must keep an exemption certificate on file for each common carrier you claim on Schedule E and for each aircraft manufacturer you claim on Schedule D.  Please also obtain the Certificate of Public Convenience and Necessity issued by the U.S. Department of Transportation [this is different than the Federal Aviation Administration (FAA) Air Carrier Certificate] from each common carrier to support the tax-exempt sale.  Exempt sales to the armed forces must be supported by a government purchase order.