Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

CHAPTER 1. Taxation Base

Article 1. Taxable and Exempt Property

Section 209.5

209.5. Vessels under construction. All right, title or interest in or to any vessel of more than 50 tons burden or 100 tons displacement, and the materials and parts held by the builder of the vessel at the site of construction for the specific purpose of incorporation therein, shall be exempt from taxation except for state purposes, while the vessel is under construction within this state.

History.—Added by Stats. 1958 (First Extra Session), p. 251, in effect July 23, 1958. Stats. 1959, p. 2190, in effect May 5, 1959, substituted "50 tons burden or 100 tons displacement" for "1,000 tons burden."

Construction.—As used in this section the term "tons burden" refers to the net tons of the vessel and not the gross tons. Favalora v. Humboldt County, 55 Cal.App.3d 969. The legislative intent behind this section was to provide a separate form of local tax relief for the California shipbuilding industry without restriction as to the nature of the contemplated maritime use of the vessel under construction. Kaiser Steel Corp. v. Solano County, 90 Cal.App.3d 662.