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 325.0720

(c) Shipments from California to Points Outside State

(3) Installation in State Generally

325.0720 Overhauled Aircraft Engines. An out-of-state owner of an aircraft engine and mount assembly enters into contracts with a mount repairman and an engine overhauler for repair of both units. The engine, with mount, is sent by common carrier to the mount repairman in California, who removes the engine and repairs the mount. The engine overhauler obtains the engine from the mount repairman, overhauls the engine, and returns it to the mount repairman who remounts the engine and returns the completed assembly by common carrier to the out-of-state owner. Since the mount repairman takes delivery of the overhauled engine in California as representative of the owner, the parts used by the overhauler to repair the engine are regarded as having been sold and delivered in this state and sales tax applies as indicated in the regulation. 7/1/65.