In the letter it states that, "We have previously concluded that training flights are incidental to interstate use provided the aircraft is otherwise used continuously in interstate commerce." (Italics added.) In other words, the letter specifically states that the rule for allowing training flights would only apply where the remaining use of the aircraft was continuous use in interstate commerce (i.e. not the test at issue here). Therefore, in addition to the fact the rule does not apply here (since a different test is involved), the rule is further limited to situations where the training flights are incidental, and the use of the aircraft for such purposes would otherwise destroy the basis for obtaining the exemption for continuous use in interstate commerce. Thus, in addition to the fact the rule does not apply here, the rule does not even apply to all situations where a taxpayer claims continuous use in interstate commerce. Accordingly, since the aircraft entered California within 90 days of purchase and the use of the aircraft after entry has not satisfied either six-month test in subdivision (b)(4) of regulation 1620,use tax is due. (Rev. & Tax. Code, §~ 6201, 6202.)"

If you plan to attempt to support a claim for an exemption from sales/use tax we strongly suggest you contact our office prior to the purchase. This claim could have been supported had the taxpayer known ALL the details correctly.

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