CA SB1243

Extends the sales tax exemption for fuel and petroleum products sold to water common carriers for out-of-state consumption from January 1, 2014 to January 1, 2024.

Revises the definition of "first out-of-state destination" to include the Panama Canal entry point when a carrier is transiting the canal in its business as a common carrier.

Requires water common carriers claiming the exemption to provide an exemption certificate to sellers and maintain documentation such as log abstracts or cargo manifests proving the fuel was transported to an out-of-state destination.

Specifies that "immediate shipment" means fuel is delivered directly into a ship for transportation outside California and not stored by the purchaser or any third party.

Provides that the state shall not reimburse local agencies for any sales and use tax revenues lost under this act, notwithstanding existing reimbursement requirements.