It shall be rebuttably presumed that "persons who are regularly engaged in commercial deep sea fishing" do not include persons who have gross receipts from commercial deep sea fishing operations that total less than $20,000 a year with respect to watercraft sold on or after July 29, 1991, and $5,000 a year with respect to watercraft sold during the period January 1, 1980 through July 28, 1991. When determining whether a person has less than the minimum amount of $5,000 or $20,000 (as applicable) in gross receipts from commercial deep sea fishing operations, the first 12-month period after the first functional use of the watercraft shall be used if the person purchasing the watercraft was not engaged in commercial deep sea fishing at the time of purchase. If the person purchasing the watercraft is already engaged in commercial deep sea fishing operations, the person will not be considered to be regularly engaged in the business of commercial deep sea fishing unless receipts from commercial deep sea fishing operations aggregate at least the minimum amount during any consecutive 12-month period which includes the first operational use of the watercraft as to which exemption is claimed. Fish receipts from either commercial deep sea fishing within the territorial waters of this state or from commercial deep sea fishing outside the waters of California may be used to meet the minimum fish receipts requirements. The tax applies with respect to watercraft used in commercial deep sea fishing operations if the principal use occurs within the territorial waters of this state.
In determining whether a purchaser or a lessee of a watercraft is using that watercraft in interstate or foreign commerce, only that use of the watercraft by the purchaser or lessee during the first 12 consecutive months commencing with the first operational use of the watercraft will be considered. If the purchaser does not own the watercraft for 12 consecutive months commencing with the first operational use, then the period of time commencing with the first operational use that the purchaser owns the watercraft will be considered.
The hull and all affixed property constituting an integral part thereof.
All property affixed or attached to the structure of the watercraft used while thus affixed or attached for navigation or operation, such as: radio transmitters, receivers and other radio equipment, radar equipment, intercommunication systems, winches, anchors, lifeboats, engines, generators, switch-gear, compasses, indicators, levers, control and signal systems, lamps, chains and cables.
All property affixed or attached to the structure of the watercraft used while thus affixed or attached for the comfort or convenience of the passengers and crew, such as: built-in bunks, furniture attached by bolts, screws or otherwise, including counters, shelves, stools, railing, stairs, partitions, doors, windows, window shades and curtains, awnings, hardware, stoves, sinks and other plumbing fixtures, and paint.
Portable equipment, furniture, devices and other property, such as; chairs, deck chairs, table or floor radios, table or floor lamps, dishes and other utensils, tables, bedding, linen, mattresses, cots, athletic or recreational equipment (not affixed or attached), pictures, fire extinguishers (portable), tools, brooms, mops, rags, towels, oil, grease, soap, cleaning materials and other consumable supplies.
For special provisions affecting watercraft, see Regulation 1610 (18 CCR 1610), "Vehicles, Vessels and Aircraft".
WATERCRAFT EXEMPTION CERTIFICATE
I HEREBY CERTIFY: That the watercraft identified below is used
() In the transportation by water of persons or property for hire in interstate or foreign commerce*;
() In commercial deep sea fishing operations outside the territorial waters of this state*;
() In transporting for hire persons or property to vessels or offshore drilling platforms located outside the territorial waters of this state;
That all tangible personal property which I shall purchase from described on purchase orders, or invoices, as tax exempt under Section 6368 of the Sales and Use Tax Law and Regulation 1594 consists of watercraft or tangible personal property becoming a component part of watercraft in the course of constructing, repairing, cleaning, altering, or improving the same, which watercraft will be used principally in the operation checked above.
__________
* NOTE: Revenue and Taxation Code section 6368(b) creates a rebuttable presumption that you are not regularly engaged in commercial deep sea fishing if your gross receipts from such operations are less than twenty thousand dollars ($20,000) a year. Revenue and Taxation Code section 6368(c) creates a rebuttable presumption that the watercraft is not regularly used in interstate or foreign commerce if your yearly gross receipts from such operations do not exceed 10 percent of the cost of the watercraft or twenty-five thousand dollars ($25,000), whichever is less.
___________________________
Date Certificate Given
___________________________
Purchaser
(Company Name)
___________________________
Address
___________________________
Signed By
(Signature of Authorized Person)
___________________________
(Print or Type Name)
___________________________
Title
(Owner, Partner, Purchasing Agent, etc.)
Seller's Permit No. (if any) ________________________________________ and/or Fish and Game License No. ________________________________________
Names of Watercraft for which certifying purchaser will be making purchases:
___________________________
___________________________
___________________________
___________________________
___________________________
Cal. Code Regs. Tit. 18, § 1594
2. Amendment filed 10-19-78; effective thirtieth day thereafter (Register 78, No. 42).
3. Amendment of subsections (a)(3), (b)(2) and (d) filed 2-28-80; effective thirtieth day thereafter (Register 80, No. 9).
4. Amendment filed 8-23-85; effective thirtieth day thereafter (Register 85, No. 34).
5. Amendment filed 11-25-87; operative 12-25-87 (Register 87, No. 48).
6. Amendment filed 7-27-88; operative 8-26-88 (Register 88, No. 32).
7. Amendment of subsection (a)(2), repealer of subsection (d) and relettering, amendment of new subsection (d) and "Watercraft Exemption Certificate", repealer of "Diesel Fuel Exemption Certificate" and amendment of NOTE filed 12-21-92; operative 1-20-93 (Register 92, No. 52).
Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Sections 6368, 6368.1 and 6421, Revenue and Taxation Code.
2. Amendment filed 10-19-78; effective thirtieth day thereafter (Register 78, No. 42).
3. Amendment of subsections (a)(3), (b)(2) and (d) filed 2-28-80; effective thirtieth day thereafter (Register 80, No. 9).
4. Amendment filed 8-23-85; effective thirtieth day thereafter (Register 85, No. 34).
5. Amendment filed 11-25-87; operative 12-25-87 (Register 87, No. 48).
6. Amendment filed 7-27-88; operative 8-26-88 (Register 88, No. 32).
7. Amendment of subsection (a)(2), repealer of subsection (d) and relettering, amendment of new subsection (d) and "Watercraft Exemption Certificate", repealer of "Diesel Fuel Exemption Certificate" and amendment of Note filed 12-21-92; operative 1-20-93 (Register 92, No. 52).