Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Revenue and Taxation Code
Part 2. Assessment
CHAPTER 1. Taxation Base
Article 1. Taxable and Exempt Property
227. Documented vessel. A documented vessel, as defined in Section 130, shall be assessed at 4 percent of its full cash value only if the vessel is engaged or employed exclusively in any of the following:
(a) In the taking and possession of fish or other living resource of the sea for commercial purposes.
(b) In instruction or research studies as an oceanographic vessel.
(c) In carrying or transporting seven or more people for hire for commercial passenger fishing purposes and holds a current certificate of inspection issued by the United States Coast Guard. A vessel shall not be deemed to be engaged or employed in activities other than the carrying or transporting of seven or more persons for hire for commercial passenger fishing purposes by reason of that vessel being used occasionally for dive, tour, or whale watching purposes. For purposes of this subdivision, "occasionally" means 15 percent or less of the total operating time logged for the immediately preceding assessment year.
History.—Added by Stats. 1974, Ch. 1467, p. 3207, in effect January 1, 1975, operative March 3, 1979. Stats. 1978, Ch. 232, deleted "March 3, 1979" and added "January 2, 1980, unless a later enacted statute which is chaptered before January 1, 1980, deletes or extends such date." Stats. 1980, Ch. 18, in effect February 29, 1980, added subdivision (c) and substituted a new second paragraph to extend the effective date to January 1, 1983, Stats. 1980, Ch. 1208, in effect January 1, 1981, substituted "4 percent" for "1 percent" after "assessed" in the first sentence. Stats. 1981, Ch. 475, in effect September 14, 1981, deleted "or" after "purposes" in subdivision (a), added "or" after "vessel" in subdivision (b), added the balance of the sentence after "purposes" in subdivision (c), and substituted a new second paragraph. Stats. 1986, Ch. 608, effective January 1, 1987, added "in either of the following" after "exclusively" in the first paragraph; substituted "." for ";" at the end of subsections (a) and (b); and deleted "State" before "Controller" and deleted "pursuant to subdivision (a) of Section 16113 of the Government Code" after "reimbursement" in the second paragraph. Stats. 1994, Ch. 940, in effect January 1, 1995, substituted "any" for "either" in the first sentence; but operative July 1, 1995, added second sentence in subdivision (c) and substituted "comply with" for "are valid with respect to" after "claims" in the second paragraph of subdivision (c). Stats. 2000, Ch. 647 (SB 2170), in effect January 1, 2001, deleted the former second paragraph which provided that "The Controller shall audit all claims for reimbursement to determine whether those claims comply with the requirements of this section."
Note.—Section 7 of Stats. 1974, p. 3207, provided that the Legislative analyst is to report to the Legislature on or before November 15, 1978, on the effect of the section on the change in the number of vessels, the change in the size of vessels, changes in the port of documentation of vessels, and the identification of any other changes in the commercial fishing and sportfishing industries attributable to the changes made by the section.
Decisions Under Former Section 227, Documented Vessel.
Construction.—Vessels under construction on the lien date and not subject to documentation until completion are not eligible for preferential assessment notwithstanding their intended use. Favalora v. Humboldt County, 55 Cal.App.3d 969.
Requirement that port of documentation be in California held invalid.—Provision that only California documented vessels be taxed at the reduced rate violated the right of owners of vessels documented in other states to equal protection of the laws guaranteed under the Federal Constitution and is therefore invalid. The balance of the statute was upheld on the basis that to do so best served the legislative intent. Haman et al. v. Humboldt County, 8 Cal.3d 922.