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Business Taxes Law Guide—Revision 2024
Transactions and Use Tax Annotations
810.0000 Aircraft Common Carriers and Waterborne Vessels—Regulation 1825
Annotation 810.0020
810.0020 Exemption Certificates. Exemption certificates should be obtained for exemptions claimed with respect to the transactions (sales) and use tax even though certificates have previously been obtained under the Bradley-Burns tax from common carriers, public utilities, and operators of waterborne vessels.
Certificates should be obtained for the following reasons:
1. While it is generally true that a transaction exempt from the Bradley-Burns tax will also be exempt from the transactions (sales) and use tax, the converse is not necessarily true. In other words, some transactions may be exempt from the transactions (sales) and use tax but not be exempt under the Bradley-Burns Uniform Sales and Use Tax Law.
2. Section 6421 of the Revenue and Taxaton Code which is incorporated into both the Bradley-Burns tax and the transactions (sales) and use tax ordinances, provides that if a purchaser certifies in writing to a seller that the property purchased will be used in a manner or for a purpose entitling the seller to regard the transaction as being exempted from sales tax and he uses the property in some other manner or for some other purpose the purchaser shall be liable for the payment of sales tax as if he were a retailer making a retail sale of the property at the time of use. Unless an exemption certificate for transactions (sales) and use tax is obtained from purchasers, this section will not apply. If the exemption certificate is not obtained and it is found that the transaction is subject to the transaction (sales) or use tax, we would have to look to the seller for the payment of the transactions (sales) or use tax rather than to the purchaser. 3/24/70.