Ezel / Tax Rulings / CA

Were fishing tackle and hardware used to repair a qualifying deep-sea fishing boat treated the same under the watercraft exemption?

Short answer No. Nets, fishing lines, and fish hooks were taxable tackle. Lag screws, nails, and repair hooks were exempt when used to repair and become component parts of a watercraft used in qualifying commercial deep-sea fishing outside California waters.
State
CA
Ruling
Annotation 600.0440
Tax type
Sales and Use Tax
Issued
1957-06-18
Issued by
California State Board of Equalization
Requested by
A redacted seller asking about fishing-boat repair items
Topics
vessel repairs component parts commercial deep sea fishing exemption certificate
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1957. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1957
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 June 18, 1957 California State Board of Equalization associate-tax-counsel letter published by CDTFA as support for a sales and use tax annotation. It distinguishes consumable fishing tackle from hardware becoming a component part during repair of a qualifying fishing vessel under then-current section 6368 and Ruling 51.5. 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

A seller asked about lag screws, nails, and hooks used to repair a fishing boat. California said section 6368 exempted property used in repair that became a component part of watercraft used for commercial deep-sea fishing outside state territorial waters.

The described repair hardware qualified when used that way. Fishing tackle did not: the letter specifically identified nets, fishing lines, and fish hooks as taxable.

What this means for you

Commercial fishers, boatyards, and marine suppliers

Separate equipment used to catch fish from material incorporated into the vessel during repair. Keep the vessel's exemption certificate and records showing that the repair item became part of the qualifying boat.

Common questions

Q: Were nets and fishing lines exempt?

A: No.

Q: Could nails and lag screws be exempt?

A: Yes, when used in repairing and becoming part of a qualifying vessel.

Q: Did the letter provide an exemption certificate?

A: Yes, it enclosed the requested watercraft exemption certificate.

Citations and references

  • California Revenue and Taxation Code § 6368
  • California Sales and Use Tax Ruling 51.5, as cited in the source

Source

Original ruling text

600.0440
June 18, 1957

Attention REDACTED TEXT

1941.80 Fishing Tackle. Sales of fishing tackle, such as nets, lines and fish hooks are not exempt, but sales of lag screws, nails and hooks used for repairing an exempt fishing boat are exempt. 6/18/57.

Gentlemen:
This is in reply to your telephone inquiry of June 17, relating to the application of sales tax to the sale of lag screws, nails and hooks used for repairing a fishing boat. Under the provisions of Section 6368 of the Sales and Use Tax Law and Ruling 51.5, copies enclosed, the tax does not apply with respect to the property used for repairing and becoming a component part of watercraft for use in commercial deep sea fishing operations outside the territorial waters of this State. Therefore, if the aforementioned lag screws, nails and hooks are used in the repairing of such watercraft, the sale is exempt from the application of sales tax. Fishing tackle, such as nets, line and fish hooks are not exempt. Enclosed is a copy of the watercraft exemption certificate which you requested. Very truly yours, Warren W. Mangels Associate Tax Counsel GAT:rc Enclosures cc: Sacramento - Compliance

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