Were high-lift airline catering trucks mobile transportation equipment when they could operate on public roads?

Plain-English summary

Out-of-state audit staff asked whether airline catering trucks designed with high-lift bodies were mobile transportation equipment.

California said yes. The source focused on whether the units were of a type that normally carried persons or property substantial distances. These trucks could and did operate on public roads, and some were registered with the DMV for public-road use.

The memorandum also stated a general vehicle-classification view that vans, as distinguished from house cars, passenger vehicles, station wagons, or multipurpose vehicles, were MTE.

The official annotation identifies the entry as amended in 2000, so the 1974 supporting memorandum should not be treated as the complete current rule.

What the record establishes

The September 26, 1974 memorandum from headquarters Tax Counsel “GLR” to Out-of-State Auditing responds to an August 15 memorandum concerning redacted A--- E--- Rental Co. The audit request is not included. Counsel says “We understand” the trucks operate on public roads and notes that some are DMV-registered; the PDF supplies no individual registration, model, specifications, route, mileage or actual lease.

The final paragraph is a general rule about vehicles registered as vans, as shown on the pink slip. It does not identify a sample of these catering trucks whose pink slips counsel examined. The published opinion decides classification only; it supplies no purchase price, rent, tax election, assessment or later outcome.

The live annotation states the classification in terms of trucks that can be licensed for public roads and normally carry people or property substantial distances. It omits counsel's doubt, the observation that only some trucks were registered, and the separate van-classification paragraph. It carries “Am. 2000–1” without publishing the amending document or explaining the change.

Common questions

Did every catering truck need an individual DMV registration?

The source focused on the type of truck and noted that some were registered for public-road use.

Was the conclusion presented as certain?

No. The memorandum said the question was not free from doubt.

Has the annotation changed since the memorandum?

Yes. The official index marks the annotation as amended in 2000.

Citations and references

• The 1974 source did not cite a statute or regulation by number.
• Official annotation marker: amended 2000-1

Verbatim support

From the 1974 memorandum:

Although the question is not free from doubt, it is our opinion that since these trucks are of a type that could and do operate on the public roads (some are licensed by DMV for public road use) they qualify as mobile transportation equipment.

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/335-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/335-0005.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Out-of-State – Auditing (DMA)

From:

HDQRS – Tax Counsel (GLR)

Subject:

A--- E--- Rental Co.

335.0005

Sept. 26, 1974

SY – XX XXXXXX

In your memo of August 15, 1974 you ask our opinion as to whether airline catering trucks which are designed with a high lift body are mobile transportation equipment. We understand that the catering trucks in question are of a type that could and do operate on public roads since some of them are registered with DMV. As you are aware the answer to your question depends upon the fact as to whether these units are of a “type” that normally carry persons or property substantial distances. Although the question is not free from doubt, it is our opinion that since these trucks are of a type that could and do operate on the public roads (some are licensed by DMV for public road use) they qualify as mobile transportation equipment. As a general rule vehicles that are registered as “vans” (designated on the pink slip) as distinguished from those being registered as house cars, passenger vehicles, station wagons, or multi-purpose would be considered mobile transportation equipment.

GLR:lb