Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
585.0000 VEHICLES, VESSELS, AND AIRCRAFT—Regulation 1610
585.0195 Sale of Vessel by a Trust. An 85 foot motor vessel is presently owned by a trust that was created pursuant to the last will and testament of a deceased person. The sole beneficiary of the family trust is the son of the deceased. The trustee of the family trust is planning to sell the motor vessel to the natural mother of the son (who was the ex-wife of the deceased).
Section 6005 provides that a trust is a person and the current owner of the vessel is the family trust. This means that the person selling the vessel would not be the son, the beneficiary to the trust; rather, the seller would be the trust itself. Since the trust is a person under section 6285(a), the transaction cannot be exempt from tax under section 6285(a).
Since the trust is not a dealer of vessels, the sale of a vessel by a person other than a dealer of vessels is not subject to sales tax. However, the purchaser of a vessel from a person such as this family trust must pay use tax measured by the sales price of the vessel to the purchaser, unless the transaction is otherwise exempt from tax. 2/6/96.