Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
600.0000 WATERCRAFT—Regulation 1594
(a) IN GENERAL
600.0063 Transfer of Vessel to Obtain Dungeness Crab Permit. In a transaction between private parties, a vessel was sold for the purpose of obtaining the Dungeness crab vessel permit and transferring it to a vessel owned by the purchaser. The vessel itself was in a scrap yard and considered as having no value. The purchaser paid $12,000.00 for the vessel and the associated permit.
According to Fish and Game Code section 8280.3(a)(1), the Dungeness crab permit owner must be the record owner of both vessels in order to transfer the permit from one vessel to another. The purchaser bought the vessel for its own sake. He/she had to own the vessel, and the title to it, in order to transfer the crab permit to another vessel owned by him/her. Although the purchaser's interest was in obtaining the permit itself, he/she in fact obtained title to the vessel for $12,000.00. The purchase of the vessel is subject to tax. 10/23/00. (2001–2).