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BTLG Table of Contents > Sales and Use Tax Annotations > I > 325.0000 Interstate and Foreign Commerce > Annotation 325.0002.100

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325.0000 Interstate and Foreign Commerce—Regulation 1620

Annotation 325.0002.100

(a) In General—Shipments Into California from Points Outside State

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325.0002.100 Aircraft-Interior Installation and Test Flights. An aircraft purchased out of state is brought to California for the purpose of having the interior installed and for test flights. The aircraft had been registered to the manufacturer as an experimental aircraft (flown about 200 hours). Under the contract of sale, the purchaser will take delivery outside this state. The manufacturer invited the purchaser to conduct visual inspections of the aircraft during its completion (installation of interior). The purchaser was also invited to be present to observe and advise the manufacturer's employees of any problems during test flights. The purchaser's employees or agents are not authorized to take possession or control of the aircraft on the purchaser's behalf in connection with any test flight. Also, the aircraft will be painted outside California and the purchaser's employees or agents will be aboard for the flight from California to the out-of-state painting destination. They will be aboard to observe how the interior of the aircraft reacts to condensation or otherwise at high altitude during an extended period of time. The employees or agents will not be authorized to take possession or control during that flight.

The aircraft's presence in California which is limited to the purposes of the aircraft's completion will not be considered in determining whether the aircraft is purchased for use in California. Also, the mere presence of the purchaser's employees or agents during the completion of the aircraft and on the aircraft during the test flights and for the flight out of state for the reasons stated above would not result in the conclusion that the purchaser took delivery of the aircraft in California. 12/11/91; 5/21/92.