Could a portable lifeboat radio qualify as an exempt watercraft component when stored aboard ship until an emergency?

Plain-English summary

A lifeboat radio was stored aboard the ship and moved into a lifeboat for emergencies. To operate, it had to be secured to a supporting surface or the lifeboat's seat or thwarts, grounded through its metal case, and connected to an antenna rigged from the lifeboat mast.

California distinguished that equipment from walkie-talkies and other items normally used in different places without substantial fastening. The radio's secure attachment while in use made it a watercraft component even though it was movable and generally described as portable.

The opinion therefore treated sales of the described radios as exempt to the extent component-part status was concerned.

What this means for you

Marine-safety suppliers, vessel operators, and tax advisers

Focus on how the equipment operates, not only whether it can be moved. Installation instructions, straps, grounding, antenna connections, and the emergency-use setup supported component status here.

Common questions

Q: Did storage aboard ship make the radio taxable portable equipment?

A: No.

Q: Why did the radio qualify?

A: It had to be securely fastened, grounded, and connected to an antenna to operate in the lifeboat.

Q: Did the opinion treat ordinary walkie-talkies the same way?

A: No. It contrasted the radio with equipment normally used without secure attachment.

Citations and references

• California Sales and Use Tax Ruling 51.5, as cited in the source

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 600.0520
• Original supporting opinion: 600.0520 PDF

Original ruling text

2052

Portable-life-boat-radio securely a£fixed or attached to radio.

600.0520

Sacra.men to

Septuber •• 1957

Mr. o. De Porter (NJC)
E. H, Stetson

By memo dated.Aur,uot 28, you have requested my interpretation of the taxability of portable lifeboat radio
·equipment under the watercraft exemption, Ruling 51.5. Thia ruling contains the provision, . "Included in the tangible
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personal property subject to , the exemption are the followings
••• All prop~rty ritfixod or attached to tha structure of the watercraft usod while thus affixod or attached for navigation or operation, such asl radio transmitters, receivers and other radi~ equipment, radar equipment, inter-communication. systems, winchos, ancnora, 11feboo.ta 1 engines, · eenerators, , switehcoar, compaosoa, indioatorsA levers, control and signal 11yst.ema, lamps, chains nnd cables • In the illustrative 11.s t of property subject to the exemption issued with our approval by tho

• · there 11 included the .folloW1ng1
  "Rndioa lshipa)"• Alao included nre "Lifeboats and equipment"• Excluded from oxompt status include the following "Nnvi~ation and communication equipment of a portable nature such o.o walkio-talkiea.,,", Aleo excluded are "Life snvin& equipment ot a portable nature such as ring buoys, life jackets, diatross s-1gnal11, -flares, rockets other than that ns is uaed as po.rt or lifeboat or lift raft."
  ·

It therefore, seems to me that it an itoID is securely affixed or nttached to a life boat while in use that it qualifies aa an exempt article even though 1n a general WRY it may be describnd aa portable beaauae it 1o kapt in some suitable storage area on the ahip to be removed therefrom in case or emergoncy and ia easily movable for thnt purpose. It 1• pointed out in the letter ot August S from taxpayer thnt the radios in question difter trom the walkio­ talki•• type in that the1 muet be affixed in order to be cranked which i• th• way th• power 11 generated and aleo th• antenna

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must 'be affixed to the lifeboat in order to be operated. 1'he audit working pnpers, Schedule 11.l(b) stnte, n·~:hen the radio .is placed in the lite boat, "When the radio ia placed in ·tha 11.fobont, two otra~e hold the caoe end radio on a board crooaing the lifeboat.

In the folder furnished by taxparer entitled. "Port• 11ble Lifoboat Radio Equipment Mackay Type Ol•A", there ,is s co~plete doscription of ;ho radios nnd thoir oporation. Thus on pae;o 13, it ia stated, "Preparation of the equipment for operation consists merely or eecuring it to nny convenient supporting surface, erowidinc · the metal case, and connecting tho antonna terminal. to an antenna." On pnc;e 15, it is otated, "lt the canvas straps provided with tho unit c&n be paesed beneath the eoat 9 strap the radio aet to the sea,t. It the straps cannot bo used! cut off_ a portion or the lowering line, · eec\lre it to the meta "D" rings, which nre attached to the case, and lnsh the &quipmont to the lifeboat thwarts"• There aro then · inetructiontt tor ric;g1ng the antenna from the lifeboat sailing mast. Figure) indicates tho method or fixing the radios 1n place. It eeem1 to me that th1a 1a differont from the usual port.able type of equipment which is rendily moved from one place to anothor and is nonnnlly used in different locations without necesanrily being aocurely fastened down nt thn point or use. It uhould also be noted that the lint preparod by tho 1
_
•
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'4'11der "Navigation and Communi cat ion .&quipment" includes w1.~n1n t.he exempt category such thin&&

as compaaoes, baromoter3! indioators, recording instruments,

and radar" which e.re aff xed or attached 1n a aubst,nntial. manner when in uoa. Tha fact thnt the rndiaein question were affixed to the lifeboats ia immaterial as the lifeboats
.
thomsolvoo are wntcrcraft or are at least a p3rt or the ahip or which they are cone1dared to be a part.
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It is, therefore
my opinion that the aale ot thee•
radios ahould be coneidere~ exempt insofar as their stntua

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or being component part ■ ot waterorart 1a concerned.

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