Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations

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325.0000 Interstate and Foreign Commerce—Regulation 1620

Annotation 325.0100.500

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

325.0100.500 Rail Freight Cars—Repair Parts. Parts installed onto rail freight cars outside California and first entering California as part of the rail freight cars are regarded as rail freight cars for purposes of the section 6368.5 exemption. (Pan American World Airways, Inc. v. State Board of Equalization (1955) 131 Cal.App.2d 638). As such, no tax applies to the use of such parts in California if the rail freight cars are thereafter used in interstate or foreign commerce. However, tax does apply with respect to parts first entering California as parts (rather than already installed onto rail freight cars), even though they are thereafter installed onto rail freight cars, because section 6368.5 does not exempt the sale or use of parts. 8/30/96.