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BTLG Table of Contents > Sales and Use Tax Annotations > U > 570.0000 Use of Property in State and Use Tax Generally > Annotation 570.1168

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U

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570.0000 Use of Property in State and Use Tax Generally

Annotation 570.1168

(d) Exclusions

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570.1168 Purchases for Use Outside California—Section 6009.1. A company services offshore rigs which are located in federal waters off the coast of California. The company purchases materials and consumables (i.e., items used at the job site) both inside and outside of California. The items purchased are transported to the dock warehouse inside California and remain there until needed at the rig.

When the company purchases the property inside of California, the applicable tax is sales tax owed by the retailer to the state of California. The storage and use exclusion provided in section 6009.1 is an exclusion from use tax, not from sales tax. Therefore, when the sale takes place in California, the storage and use exclusion does not apply. However, when property is purchased outside this state for storage in California, the use tax applies. Therefore, the exclusion provided in section 6009.1 applies to property purchased outside this state, stored in California and subsequently transported to the rig for use solely outside this state. 6/8/95.