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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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I


325.0000 Interstate and Foreign Commerce—Regulation 1620

Annotation 325.0003.200

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


325.0003.200 Aircraft Used Exclusively in Interstate Commerce. A corporation will take delivery of an aircraft outside California that will be first functionally used in interstate commerce before it enters California. It will thereafter be used in interstate commerce while in California. It is intended that the aircraft will be principally hangared at Van Nuys Airport. However, on the initial trip into California, a passenger having an out-of-state origin will be dropped off in San Francisco and the aircraft will be dispatched empty to Van Nuys Airport, the aircraft's home base.

The corporation has a maintenance facility at a California airport and the aircraft will have flights to and from that California airport (or other locations in California) solely for the purpose of maintenance.

The trip from San Francisco to Van Nuys on the initial flight into California would be considered a part of the continuous journey from outside California provided that flying the aircraft empty to Van Nuys was a part of the original flight plan. However, if any passengers or cargo are loaded in San Francisco, the trip will be regarded as an intrastate use.

Flights to the maintenance facility in California solely for purpose of maintenance are regarded as incidental to interstate use provided the aircraft is otherwise used continuously in interstate commerce both inside and outside California and not exclusively in California. If any such flight has an additional purpose, such as carrying cargo or passengers, that flight would not be regarded as incidental to interstate use. 11/7/90; 1/2/91.