Were truck cranes with 10-to-25-ton lifting capacity mobile transportation equipment?

Plain-English summary

Counsel described truck cranes with lifting capacity of 10 to 25 tons. California classified them as mobile transportation equipment.

The cranes were smaller and could travel farther and faster than larger cranes the agency had previously excluded. They also did not require special permits for highway travel. The source said that permit fact was not controlling by itself, but it helped distinguish these cranes and supported substantial-distance use.

California also concluded that the cranes transported persons or property: they carried the drivers needed to operate them and carried the crane apparatus itself.

Comparison source and missing evidence

The May 24 letter responds to a May 4 description that is not reproduced. It compares the reported cranes with larger units excluded from MTE in counsel's March 17 letter, but that earlier letter is also absent. The document ends with “Enclosures” without identifying or reproducing them.

The conclusion relies on reported 10-to-25-ton lifting capacity, greater distance and speed than the larger cranes, no special highway permit requirement, carriage of a required driver, and carriage of the crane itself. The official PDF supplies no manufacturer or model, crane and chassis specifications, registrations, permit rules or records, speed or range testing, route, actual travel, purchase, lease, rent, return, assessment, payment, or tax amount.

The live 335.0087 annotation materially tracks the capacity, permit qualification, substantial-distance reasoning, driver, and crane-component conclusions. It omits the missing May 4 and March 17 letters, unidentified enclosures, comparison evidence, transaction records, and absence of a tax-measure decision.

Common questions

Did the lack of a special highway permit decide the issue by itself?

No. The letter expressly said it was not controlling alone, but it helped distinguish the smaller cranes from larger, less road-capable models.

What did the cranes transport?

The source identified both the required drivers and the crane itself.

Did the official PDF include the crane specifications or earlier comparison letter?

No. The request, March 17 letter, unidentified enclosures, specifications, permit and travel evidence, and leases are absent.

Citations and references

• California Revenue and Taxation Code sections 6006, 6010, and 6023
• California Sales and Use Tax Regulation 1661
• Requester's May 4, 1977 letter and Assistant Chief Counsel's March 17, 1977 letter about larger cranes — referenced but not included
• Unidentified enclosures — listed but not included
• Crane specifications, highway-permit and travel evidence, leases, and tax records — not included

Verbatim support

From the official May 24, 1977 letter:

Although not controlling in itself, the fact that the 10-25 tone cranes do not require special permits to travel on the highway distinguishes them from the others and makes them less amenable to a finding that they are not for use for substantial distances.

They carry drivers, who are required to operate the cranes, and they carry the crane itself.

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/335-0087.pdf

Original ruling text

335.0087

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
(916) 445-3723

May 24, 1977

F--- C. L--M--- & F----- --- ----- ---, CA XXXXX
Dear Mr. L---:
After considering your letter of May 4, we have concluded that the truck cranes which you describe, with a lifting capacity of 10-25 tones, should be classified as “mobile transportation equipment.” From your description, these truck cranes are smaller and are capable of traveling farther and faster than those which in my letter to you of March 17, were excluded from the classification of mobile transportation equipment. Although not controlling in itself, the fact that the 10-25 tone cranes do not require special permits to travel on the highway distinguishes them from the others and makes them less amenable to a finding that they are not for use for substantial distances. With respect to the question whether these truck cranes carry persons or property, it is our view that they do. They carry drivers, who are required to operate the cranes, and they carry the crane itself. Accordingly, we regard the truck cranes with a lifting capacity of 10-25 tons as “mobile transportation equipment” within the meaning of Sections 6006, 6010 and 6023 of the Revenue and Taxation Code and Regulation 1661. Very truly yours,

Thomas P. Putnam
Assistant Chief Counsel
TPP:po
Enclosures