Ezel / Tax Rulings / CA

Were sales to Amtrak exempt from California sales and use tax even though Amtrak was not a United States instrumentality?

Short answer Yes. The 1991 memorandum said federal law exempted Amtrak from state sales and use taxes, so California treated sales to Amtrak as exempt under Revenue and Taxation Code section 6352.
State
CA
Ruling
Annotation 505.0060
Tax type
Sales and Use Tax
Issued
1991-10-09
Issued by
California State Board of Equalization
Requested by
Board unit staff (unit redacted)
Topics
amtrak sales tax exemption
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1991. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1991
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is a short October 9, 1991 internal California State Board of Equalization memorandum published by CDTFA as support for a sales and use tax annotation. It states the law and code citations used at that time without discussing transaction-specific facts or later statutory changes. Verify current law before relying on the historical conclusion. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

California said sales to Amtrak were exempt from state sales and use tax. The memorandum acknowledged that Amtrak was not a United States instrumentality, but concluded that federal law independently exempted it from state sales and use taxes.

Because federal law supplied that exemption, the memorandum applied California Revenue and Taxation Code section 6352 to exempt sales to Amtrak.

What this means for you

Vendors selling to Amtrak and tax advisers

The historical exemption rested on a specific federal statute, not on treating Amtrak as the United States or a federal instrumentality. Confirm the current federal and California provisions for present-day transactions.

Common questions

Q: Did California call Amtrak a federal instrumentality?

A: No.

Q: Why were sales to Amtrak exempt?

A: The memorandum said federal law exempted Amtrak from state sales and use taxes.

Q: Did the memorandum analyze any particular sale?

A: No. It stated a general annotation conclusion.

Citations and references

  • 45 U.S.C. § 546b
  • California Revenue and Taxation Code § 6352

Source

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Victoria Lani Arena
--- Unit

From:

David H. Levine

Subject:

Annotation

505.0060

October 9, 1991

After answering numerous telephone calls on this question, I guess it is about time to
annotate the following, probably under category 505:
Amtrak. Although not a United States instrumentality, Amtrak is exempt from
state sales or use taxes pursuant to federal law, 45 U.S.C. section 546b.
Therefore, sales to Amtrak are exempt from sales or use tax under section 6352.

DHL:cl

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