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BTLG Table of Contents > Sales and Use Tax Annotations > L > 335.0000 Leases of Mobile Transportation Equipment > Annotation 335.0042

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335.0000 Leases of Mobile Transportation Equipment— Regulation 1661

Annotation 335.0042

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335.0042 Lease of Aircraft Engines Installed in California. A lease of replacement engines, installed in aircraft within California, which are operated by common carriers, are leases of mobile transportation equipment and do not qualify for the exemption from tax under Revenue and Taxation Code section 6366.1. Engines purchased out of state are subject to use tax measured by the purchase price, unless the lessor makes a timely election to pay use tax measured by the fair rental value which is generally the rental payable. The tax is due on such rental payments whether the property is located inside or outside California during the period of lease. 5/9/90.