How do I avoid California sales tax on an aircraft?

You can legally avoid California sales tax by qualifying for one of the CDTFA’s aircraft exemptions. The most common are the Principal Use Test and the Interstate Commerce exemption.

Does California tax out-of-state aircraft purchases?

Yes — California can tax you even if the aircraft was purchased elsewhere if it’s brought into or used in California within the first 12 months. An exemption must be documented to avoid tax.

How does the ‘principal use test’ work for aircraft in California?

You must show that 100% of your operational flight time occurred outside California during the first 12 months of ownership. This includes strict rules on intent, storage, and documentation.

Do I have to pay California use tax on my airplane/jet?

You must pay California use tax unless you meet the requirements of a recognized exemption. If your aircraft will be stored, used, or based in California, you must follow strict rules to prove qualified out-of-state use or other exemption criteria.

California use tax on RVs or exotic cars – do I have to pay?

If the vehicle is brought into California during the first 12 months, use tax likely applies unless you meet out-of-state use requirements or another exemption.

I bought an aircraft—how do I fix California tax problems?

You still have options. We can look at your purchase date, usage, logs, and delivery to determine if you qualify for an exemption or how to mitigate exposure.

I got a CDTFA letter about use tax—what do I do?

Do not ignore it. Call us immediately! We can step in, evaluate their claim, ask you a few qualifying questions, prepare documentation, and communicate with CDTFA on your behalf.

How to avoid California sales tax on a boat or yacht?

You can avoid California sales tax by structuring delivery and usage correctly to meet an exemption. The most common is the Principal Use Test, requiring the vessel to be kept and used outside CA for the first 12 months of ownership.

How long do I need to keep my boat out of California to avoid tax?

You must have 12 months of documented out-of-state use. Proper supporting documentation is critical.

What paperwork does California require for sales/use tax exemption on aircraft or boats?

The CDTFA requires extensive documentation proving where and how the asset was used. This can include logs, receipts, delivery evidence, storage agreements, and financial records. We prepare the full audit package.