Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2011
 

Sales And Use Tax Law

CHAPTER 4. EXEMPTIONS

Article 1. General Exemptions

Section 6356

6356. Vessels. There are exempted from the sales tax the gross receipts from sales of vessels of more than 1,000 tons burden by the builders thereof.

History.—Added by Stats. 1941, Ch. 36, effective January 1, 1942. Stats. 1985, Ch. 591, effective January 1, 1986, substituted "sales tax" for "taxes imposed by this part", and deleted "and the . . . this State" after "thereof."

Purchase in state of ship over 1000 tons burden.—A ship purchased outside California or in interstate commerce for use in the state may be constitutionally taxed. Hence, the sale of a ship of more than 1000 tons burden within the state is not with the conditional exemption from the use tax, which exemption is applicable if the imposition of a similar tax as respects a vessel purchased outside of California or in interstate commerce would be unconstitutional. In re Los Angeles Lumber Products Co., Ltd. (1942) 45 F.Supp. 77.