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 325.0190

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

325.0190 Use Tax Exclusion. An out-of-state retailer, engaged in business in California, sold aircraft parts which were delivered to airline common carriers in California. Since the sales occurred outside California, use tax on the parts is due, unless an exemption or exclusion from tax applies. In this case, the seller accepted exemption certificates from the carriers, under Regulation 1621, and did not collect the use tax on the parts. However, those certificates are valid only with respect to the exemption from the sales tax as provided by section 6385. Therefore, since the seller did not take a certificate, from the carriers, claiming the storage and use exclusion provided by section 6009.1, it still owes the use tax it was required to collect. This applies unless it establishes that the parts' presence in California is excluded from "use" as provided by section 6009.1. 9/26/89.