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Business Taxes Law Guide—Revision 2024
Sales And Use Tax Regulations
Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration — Business Taxes (State Board of Equalization — Business Taxes — See Chapters 6 and 9.9)
Chapter 4. Sales and Use Tax
Article 10. Matters Involving the Federal Government
Regulation 1619
Regulation 1619. Foreign Missions and Consuls.
Reference: Sections 6272, 6352, and 7053, Revenue and Taxation Code.
Vienna Convention on Diplomatic Relations of April 18, 1961, article 34, 23 U.S.T. 3242 T.I.A.S. No. 7502, Vienna Convention on Consular Relations of April 24, 1963, article 49, 21 U.S.T. 77, T.I.A.S. No. 6820; Taiwan Relations Act (22 U.S.C. §§ 3301-3316); Agreement on Privileges, Exemptions and Immunities between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States, signed February 4, 2013; and Designation and Determination under the Foreign Missions Act, March 9, 2014 (79 Fed.Reg. 16090 (March 24, 2014)).
(a) Application of Tax.
(1) Official Purchases In General. Tax does not apply to the sale or use of tangible personal property sold or leased to a foreign mission or representative office to the extent that such mission or representative office has been identified by the U.S. Department of State or the American Institute in Taiwan as exempt from the tax pursuant to treaties or other diplomatic agreements with the United States. A foreign mission or representative office exempt from taxation pursuant to treaties or other diplomatic agreements with the United States will be issued a Mission Tax Exemption Card by the U.S. Department of State, or an Official Tax Exemption Card by the American Institute in Taiwan, for official purchases only and for the sole benefit of the foreign mission or representative office identified on the face of the card. To qualify for exemption, the U.S. Department of State or the American Institute in Taiwan requires that all purchases be paid in the form of payment in the name of the foreign mission or representative office.
(2) Personal Purchases In General. Tax does not apply to the sale or use of tangible personal property sold or leased to foreign consular officers, employees, or members of their families, or to a representative office's employees and members of their families, to the extent that such persons have been identified by the U.S. Department of State or the American Institute in Taiwan as exempt from the tax pursuant to treaties or other diplomatic agreements with the United States. Persons identified as exempt from taxation pursuant to treaties or other diplomatic agreements with the United States will be issued a Personal Tax Exemption Card by the U.S. Department of State or the American Institute in Taiwan which identifies the bearer as exempt from tax and which specifies the extent of the exemption.
(3) Tax applies to sales of tangible personal property to foreign missions or representatives offices, foreign consular officers, employees, or members of their families, or to a representative office's employees and members of their families, who do not hold a Tax Exemption Card issued by the U.S. Department of State or the American Institute in Taiwan except as provided in subparagraph (a)(4) below. Also, tax applies to sales of tangible personal property to persons holding Tax Exemption Cards where their total purchases in a single transaction do not exceed the minimum level of exemption as specified on the Tax Exemption Card. Sales or use tax applies to the sale or use of tangible personal property sold to nationals of the United States even though such persons may perform consular functions for foreign governments.
(4) Vehicles. In addition to the exemption provided in subparagraphs (a)(1) and (a)(2), the sale or lease of vehicles to foreign missions or representative offices, foreign consular officers, employees, or members of their families, or to a representative office's employees and members of their families, will be exempt from the sales and use tax if:
(A) The purchaser provides a valid Tax Exemption Card (Personal, Mission, or Official) or a protocol identification card to the retailer; and
(B) The retailer contacts and obtains directly from the U.S. Department of State, Office of Foreign Missions or the American Institute in Taiwan a letter stating that the vehicle sale or lease to the purchaser is eligible for exemption from tax.
For purposes of this regulation, "vehicle" is as defined in section 6272 of the Revenue and Taxation Code.
(b) Records of Retailers. Invoices or other written evidence of sale must be retained by the retailer to support any transaction claimed as an exempt sale on its sales and use tax returns for sales to foreign consuls. The invoices or other written evidence should show the name of the purchaser, the name of the mission or representative office, the tax exemption number, the expiration date of the Tax Exemption Card, and the minimum level of exemption specified on the Tax Exemption Card. For official purchases as described in subdivision (a)(1), the retailer shall retain evidence that the form of payment was in the name of the foreign mission or representative office. Such payments may include official checks, official credit cards, or electronic funds transfers (automated clearinghouse debits, automated clearinghouse credits, or wire transfers). In addition, to support each transaction claimed as an exempt sale or lease of a vehicle, the retailer must retain a copy of the Tax Exemption Card (Personal, Mission, or Official) or protocol identification card, and the letter from the U.S. Department of State, Office of Foreign Missions or the American Institute in Taiwan stating that the vehicle sale or lease to the purchaser is eligible for exemption from tax.
Note.—For special provisions affecting record retention, see Regulation 1698.
History—Adopted April 7, 1977, effective May 15, 1977.
Amended February 5, 1986, effective March 3, 1986. In subdivision (a), "Application of Tax," amended language to provide that foreign consular officers, employees, or members of their families, to the extent such persons are immune from taxation pursuant to treaties or other diplomatic agreements with the United States, are exempt from sales or use tax to the extent that they have been identified by the U.S. State Department as immune from tax. Added an explanation regarding the Tax Exemption Cards to be issued by the U.S. State Department as proof of exemption. Added language which explains that tax applies to sales of tangible personal property to foreign consular officers, employees, or members of their families who do not hold a Tax Exemption Card issued by U.S. State Department. Also added language to provide that tax applies to sales of tangible personal property to persons holding Tax Exemption Cards where their total purchases in a single transaction does not exceed the minimum level of exemption specified on the Tax Exemption Card. Deleted provisions explaining procedures for obtaining Tax Exemption Cards from State Board of Equalization. Amended language describing the records a retailer is required to maintain to support claimed exempt sales when foreign consular official presents a Tax Exemption Card. Renumbers subdivision (c) to subdivision (b).
Amended February 3, 1988, effective May 12, 1988. In subdivision (a), added provisions to provide that sales to certain persons identified by U.S. Department of State are exempt from tax.
Amended June 27, 1996, effective October 6, 1996. Amended subdivision (a)(2) to clarify that the exemption becomes available on or after the date of assumption of duties and to provide for methods of proof of assumption of duties. Amended entire regulation to provide that exemption applies to leases as well as sales.
Amended October 19, 2004, effective February 5, 2005. Subdivision (a)(2)—new unnumbered paragraph added, effective June 1, 2003, to implement new OFM requirements to establish exemption for sales or leases of vehicles to foreign consular officers, employees, or members of their families. Subdivision (b)—abbreviation "(OFM)" replaces "Office of Foreign Missions, US Department of State"; new unnumbered paragraph added to explain records retailers must maintain to support claimed exempt sales or leases to foreign consular officials or their families or employees.
Amended October 27, 2015, effective April 1, 2016. Renamed the regulation from "Foreign Consuls" to "Foreign Missions and Consuls"; added a new subdivision (a)(1); renumbered the first paragraph in current subdivision (a)(1) as subdivision (a)(2) and added "Personal Purchases" to the title; renumbered the second paragraph of current subdivision (a)(1) as subdivision (a)(3); renumbered current subdivision (a)(2) as subdivision (a)(4). In subdivisions (a)(2) and (a)(3), added "or to a representative office's employees and members of their families" in two places, added "or the American Institute in Taiwan" in three places, added "Personal" in front of "Tax Exemption Card," added the phrase "foreign missions or representatives offices," and renumbered the reference to subdivision (a)(2) as a reference to subdivision (a)(4). In subdivision (a)(4), added "and (a)(2)" after "(a)(1)"; in the first paragraph, deleted obsolete text from the first paragraph after the new reference to "(a)(2)" and deleted "Effective June 1, 2003," from the beginning of the second paragraph to combine the first and second paragraphs. Also in subdivision (a)(4), added "foreign missions or representative offices," and added ", or to a representative office's employees and members of their families". In subdivision (a)(4)(A), replaced "(Personal or Mission)" with "(Personal, Mission, or Official)". In subdivision (a)(4)(B) replaced "OFM" with "U.S. Department of State, Office of Foreign Missions or the American Institute in Taiwan", and deleted "('OFM Eligibility Letter')"; added new last sentence to subdivision (a)(4). In subdivision (b), in the first sentence replaced "deduction" with "transaction," added "as an exempt sale" after "claimed", and added "and use" before "tax"; in the second sentence, added "or other written evidence",and added "or representative office"; added a new third sentence clarifying forms of payment. Also in subdivision (b), deleted obsolete text at the end of the fourth sentence in the first paragraph and deleted the first sentence of the second paragraph to combine the first and second paragraphs. In the last sentence of subdivision (b), replaced "(Personal or Mission)" with "(Personal, Mission, or Official)," replaced "OFM" with "letter from the U.S. Department of State, Office of Foreign Missions or the American Institute of Taiwan stating that the vehicle sale or lease to the purchaser is eligible for exemption from tax" and deleted the phrase "Eligibility Letter to support each transaction claimed as an exempt sale or lease of a vehicle to a foreign consular officer, employee, or member of his or her family". In the reference note, revised the format of the citation to the Vienna Convention on Diplomatic Relations, and added additional references after the citation.