Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Transactions and Use Tax Annotations

817.0000 PLACE OF DELIVERY OF CERTAIN VEHICLES, AIRCRAFT AND UNDOCUMENTED VESSELS—Regulation 1823.5

Annotation 817.0260

817.0260 Documented and Undocumented Vessels. An undocumented vessel is defined in the Vehicle Code section 9840 as "any vessel which is not required to have and does not have a valid marine document issued by the Bureau of Customs of the United States or any federal agency successor thereto." The rules regarding the application of district tax set forth in Regulation 1823.5 were intended to be applied only to undocumented vessels. Sales of documented vessels are evaluated for district tax consequences just as are the sales of any other item of tangible personal property. Therefore, if a documented vessel is sold in a district, and the seller ships or delivers it out of that district pursuant to the contract of sale, the transactions tax of the seller's district does not apply to the sale. If the buyer resides in a district, the use tax of that district does apply, and the seller must collect it if engaged in business in the buyer's district. 6/22/94.