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California Aircraft Exemption Increases, 2016

  • Nov 25, 2015 | Gail Cole

 Partial exemption for aircraft common carriers in California to increase in 2016.

California’s local sales tax exemption for qualifying sales to aircraft common carriers will increase from 0.75% to 1% beginning January 1, 2015. Certain purchases by aircraft common carriers also qualify for the 1% exemption.

This local sales tax exemption was initially 1%, but was decreased to 0.75% in July 2004 due to the California Local and State Triple Flip. With the sunset of the Triple Flip, the rate of the exemption returns to 1%.

According to California State Board of Equalization, “The exemption is limited to supplies and equipment (excluding fuel and petroleum products) used or consumed directly in the carriage of persons or property. It does not include office supplies, shop equipment, or an other property not directly used or consumed in the carriage of persons or property.”

Businesses may continue to use their existing Exemption Certificate Aircraft Common Carrier (form BOE-230-Q-1) to support partially exempt sales under the new rate. Additional details.

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photo credit: BRITISH COLUMBIA 1971 MUNICIPAL EXEMPT plate via photopin (license)

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.