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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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U


570.0000 Use of Property in State and Use Tax Generally

Annotation 570.1220

(e) Installation; Repairing


570.1220 Aircraft—Installation of Interior. A new airplane purchased out-of-state is brought to California for the sole purpose of having an interior installed. Upon completion of the installation, the airplane is to be delivered to the purchaser out-of-state without any other use or storage here. Installation of the interior is a step in the manufacturing process necessary to put the airplane in a functional condition. Assuming that the airplane is put to its first functional use outside California, the period during which the airplane is here while the interior is being installed will not be considered for use tax purposes. Thus, the airplane will be subject to use tax only if it re-enters California within ninety days [see note below] of its completed delivery and thereafter is principally used here during the ensuing six months. 11/4/66. (Am. 2006–1; Am. 2008–1). (Note: For the period October 2, 2004 through June 30, 2007, under certain conditions any vehicle, vessel, or aircraft purchased outside of California and brought into the state within 12 months from the date of its purchase is presumed to be acquired for storage, use, or other consumption in California and subject to use tax.) (Regulation 1620(b)(5).)