Which vessel lights qualified as component parts: bulbs, installed lights, or portable lamps?

Plain-English summary

California distinguished installed vessel lighting from replaceable bulbs and movable lamps.

Lights and lanterns qualified as watercraft components when substantially affixed or attached while in use. Light globes did not qualify.

Flashlights, battle lanterns, oil lamps, portable electric lights with extension cords, and other lights used intermittently in different locations were portable equipment and taxable. For items within the exemption, the letter gave an effective date of October 1, 1949.

What this means for you

Marine-lighting sellers, vessel operators, and tax advisers

Classify the fixture separately from its bulb and document whether the light remains substantially installed during use. Mobility among locations points away from component status.

Common questions

Q: Were light globes exempt components?

A: No.

Q: Could an installed lantern qualify?

A: Yes, if substantially attached while in use.

Q: Were flashlights and extension-cord lights exempt?

A: No.

Citations and references

• California Revenue and Taxation Code § 6368
• California Sales and Use Tax Regulation 1594, as stated in the current annotation
• 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 600.0560
• Original supporting opinion: 600.0560 PDF

Original ruling text

600.0560

May 25, 1950

Account No
Gentlemen:
You have requested us to advise you as to "when the recent interpretation of Sales Tax Ruling 51.5, Watercraft, regarding lamps or bulbs will become effec­ tive''. We are not sure that we understand precise! y what you mean by such a "recent interpretation". Sales and Use Tax Ruling 51.5 was adopted pursuant to Section 6368 of the Revenue and Taxation Code, effective October 1, 1949, providing for an exemption with respect to sales of certain watercraft and materials becoming a component part of such watercraft. Considerable study was made of the question of what property might properly be regarded as becoming a component par t of watercraft, within the meaning of the exemption, and it was concluded that light globes are not to be regarded as becoming a component part of watercraft within the meaning of the section. It was concluded, however, that lights and lanterns, provided they are affixed or attached to the watercraft in a substantial manner ~hen in use, would be regarded as becoming component parts ·of the watercraft. Excepted from this category, however, are lights and lanterns used intermittently at various locations and for various purposes in the ship, such as flashlights, battle lan­ terns, oil lamps, and portable electric lights with extension cords. To the extent that the article is included within the exemption, the effective date of the exemption as to the particular article is October 1, 1949. Very truly yours,

E. H. Stetson
Tax Counsel

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