Laws, Regulations & Annotations

V

860.0000 VESSELS

Annotation 860.0022

860.0022 Exemption. The phrase "engaged in the transportation of freight or passengers" has been interpreted by the courts to mean "engaged in the transportation of property or persons for hire." While the California Constitution does not expressly require that exempt vessels be used "exclusively" for transportation purposes, the cases speak in terms of "primary," "principal," or "predominant" use. Thus, when an appropriately-sized vessel engages only partially in qualifying transportation activities, it will qualify for the exemption provided by section 3(1) of article XIII thereof only if the vessel is primarily engaged in such activities. In order for the vessel to be found to be "primarily engaged" in qualifying transportation, it must spend more than 50 percent of its time in such activity. C 2/8/2000.