Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
325.0000 INTERSTATE AND FOREIGN COMMERCE—Regulation 1620
(c) SHIPMENTS FROM CALIFORNIA TO POINTS OUTSIDE STATE
(2) Delivery to Purchaser in State
325.0677 Mother Ship. A "mother ship" of a cooperative association resupplies a fleet of fishing vessels belonging to its members. Fuel is purchased for the association's ship and also to resell to the members. The association also transports supplies and ship stores which are purchased in the members' names and are transported to a prearranged rendezvous area.
The fuel which the association resells to its members on the high seas may be purchased for resale. The fuel which is used by the mother ship is subject to tax. The exemption provided for in section 6385 is not available. The "mother ship" is not engaged in transporting persons or property in interstate or foreign commerce as required by section 6385(a). Also, the "mother ship" is not engaged in fishing operations which would entitle it to the exemption provided by section 6368.2. Its income is not from fishing operations but rather from transporting cargo and selling fuel.
The "mother ship" is a carrier for the purposes of Regulation 1620(a)(3)(B). Thus, the sales of ship stores and supplies to the members transported out of state pursuant to the contract of sale will be exempt. 7/23/85.