Ezel / Tax Rulings / CA

Were launching ways or trestles installed on a cargo vessel exempt as watercraft component parts?

Short answer Yes. The vessel carried cargo for hire on the high seas, and the ways or trestles became part of it when installed to handle special cargo. California exempted the sale under section 6368 and initiated a refund of the tax paid.
State
CA
Ruling
Annotation 600.0500
Tax type
Sales and Use Tax
Issued
1954-06-14
Issued by
California State Board of Equalization
Requested by
A redacted seller seeking reconsideration of launching-way treatment
Topics
component parts transportation for hire
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1954. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1954
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 14, 1954 California State Board of Equalization tax-counsel letter published by CDTFA as support for a sales and use tax annotation. It concerns redacted launching ways or trestles installed on a vessel verified to carry cargo for hire on the high seas. The result depends on those items becoming part of that vessel for special-cargo handling. 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

After further factual investigation, California verified that the vessel carried cargo for hire on the high seas. Launching ways or trestles were placed aboard to handle a special cargo and became part of the vessel when installed.

The sale therefore qualified for exemption under section 6368. The Board said it was taking steps to refund the sales tax paid on the transaction.

What this means for you

Cargo-vessel operators, fabricators, and tax advisers

Document the vessel's qualifying transportation-for-hire use and how special-cargo equipment is installed as part of the vessel. Equipment merely placed aboard without becoming part of it may present a different result.

Common questions

Q: Did the vessel carry cargo for hire?

A: Yes, on the high seas.

Q: Why did the ways or trestles qualify?

A: They became part of the vessel when installed to handle special cargo.

Q: Was tax already paid?

A: Yes. The letter says the Board was initiating a refund.

Citations and references

  • California Revenue and Taxation Code § 6368

Source

Original ruling text

Installed upon vessel.

600.0500
June 14, 1954

Gentlemen:

Upon receipt of your letter of April 1 we made a further investigation of the facts in connection with the launching ways installed by -------, upon the ----------.

It has been verified that this vessel carries cargo for hire on the high seas and that the trestle or ways become a part of the vessel at the time placed thereon to handle a special cargo. It is, therefore, our opinion under section 6368 of the Sales and Use Tax Law, the sale of the trestle or ways by ----------, is exempt from sales tax. Accordingly, we are taking appropriate steps to refund to -----------, the amount of sales tax paid upon this transaction.

Very truly yours,

E. H. Stetson
Tax Counsel

EHS:ph
cc: Long Beach - Auditing

( HMR )

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