California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 4 - Sales and Use Tax › Article 3 - Manufacturers, Producers, Processors › Section 1534 - Timber Harvesting Equipment and Machinery

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) General. Commencing on and after
				  September 1, 2001, section
				  6356.6
				  of the Revenue and Taxation Code partially exempts from sales and use tax the
				  sale of, and the storage, use, or other consumption in this state, of off-road
				  commercial timber harvesting equipment and machinery, and parts of off-road
				  commercial timber harvesting equipment and machinery, that are purchased by a
				  qualified person for use primarily in timber harvesting. The terms "off-road
				  commercial timber harvesting equipment and machinery," "parts of off-road
				  commercial timber harvesting equipment and machinery," "qualified person," and
				  "commercial timber harvesting operations" are defined below.
For the period commencing on September 1, 2001, and ending
					 on December 31, 2001, the partial exemption applies to the taxes imposed by
					 sections
					 6051
					 and
					 6201
					 of the Revenue and Taxation Code (4.75%), but does not apply to the taxes
					 imposed pursuant to sections
					 6051.2
					 and
					 6201.2
					 of the Revenue and Taxation Code, the Bradley-Burns Uniform Local Sales and Use
					 Tax Law, the Transactions and Use Tax Law, or section
					 35 of article XIII of the
					 California Constitution.
For the period commencing on January 1, 2002, and ending on
					 June 30, 2004, the partial exemption applies to the taxes imposed by sections
					 6051,
					 6051.3,
					 6201,
					 and
					 6201.3
					 of the Revenue and Taxation Code (5%), but does not apply to the taxes imposed
					 pursuant to sections
					 6051.2
					 and
					 6201.2
					 of the Revenue and Taxation Code, the Bradley-Burns Uniform Local Sales and Use
					 Tax Law, the Transactions and Use Tax Law, or section
					 35 of article XIII of the
					 California Constitution.
For the period commencing on July 1, 2004 and ending on
					 March 31, 2009, the partial exemption applies to the taxes imposed by sections
					 6051,
					 6051.3,
					 6051.5,
					 6201,
					 6201.3,
					 and
					 6201.5
					 of the Revenue and Taxation Code (5.25%), but does not apply to the taxes
					 imposed or administered pursuant to sections
					 6051.2
					 and
					 6201.2
					 of the Revenue and Taxation Code, the Bradley-Burns Uniform Local Sales and Use
					 Tax Law, the Transactions and Use Tax Law, or section
					 35 of article XIII of the
					 California Constitution.
For the period commencing on April 1, 2009, and ending on
					 June 30, 2011, the partial exemption applies to the taxes imposed by sections
					 6051,
					 6051.3,
					 6051.5,
					 6051.7,
					 6201,
					 6201.3,
					 6201.5,
					 and
					 6201.7
					 of the Revenue and Taxation Code (6.25%), but does not apply to the taxes
					 imposed or administered pursuant to sections
					 6051.2
					 and
					 6201.2
					 of the Revenue and Taxation Code, the Bradley-Burns Uniform Local Sales and Use
					 Tax Law, the Transactions and Use Tax Law, or section
					 35 of article XIII of the
					 California Constitution.
For the period commencing on July 1, 2011, and ending on
					 December 31, 2012, the partial exemption applies to the taxes imposed by
					 sections
					 6051,
					 6051.3,
					 6051.5,
					 6201,
					 6201.3,
					 and
					 6201.5
					 of the Revenue and Taxation Code (5.25%), but does not apply to the taxes
					 imposed or administered pursuant to sections
					 6051.2
					 and
					 6201.2
					 of the Revenue and Taxation Code, the Bradley-Burns Uniform Local Sales and Use
					 Tax Law, the Transactions and Use Tax Law, or section
					 35 of article XIII of the
					 California Constitution.
For the period commencing on January 1, 2013, and ending on
					 December 31, 2015, the partial exemption applies to the taxes imposed by
					 section 36 of article XIII of the
					 California Constitution and sections
					 6051,
					 6051.3,
					 6051.5,
					 6201,
					 6201.3,
					 and
					 6201.5
					 of the Revenue and Taxation Code (5.50%), but does not apply to the taxes
					 imposed or administered pursuant to sections
					 6051.2
					 and
					 6201.2
					 of the Revenue and Taxation Code, the Bradley-Burns Uniform Local Sales and Use
					 Tax Law, the Transactions and Use Tax Law, or section
					 35 of article XIII of the
					 California Constitution.
For the period commencing on January 1, 2016, and ending on
					 December 31, 2016, the partial exemption applies to the taxes imposed by
					 section 36 of article XIII of the
					 California Constitution and sections
					 6051,
					 6051.3,
					 6201,
					 and
					 6201.3
					 of the Revenue and Taxation Code (5.25%), but does not apply to the taxes
					 imposed or administered pursuant to sections
					 6051.2
					 and
					 6201.2
					 of the Revenue and Taxation Code, the Bradley-Bums Uniform Local Sales and Use
					 Tax Law, the Transactions and Use Tax Law, or section
					 35 of article XIII of the
					 California Constitution.
For the period commencing on January 1, 2017, the partial
					 exemption applies to the taxes imposed by sections
					 6051,
					 6051.3,
					 6201,
					 and
					 6201.3
					 of the Revenue and Taxation Code (5%), but does not apply to the taxes imposed
					 or administered pursuant to sections
					 6051.2
					 and
					 6201.2
					 of the Revenue and Taxation Code, the Bradley-Burns Uniform Local Sales and Use
					 Tax Law, the Transactions and Use Tax Law, or section
					 35 of article XIII of the
					 California Constitution.
(b)
				  Definitions. For purposes of this regulation:
(1) "Commercial timber harvesting operations"
				  means the cutting or removal or both of timber or other solid wood forest
				  products, from timberlands for commercial purposes, together with all the work
				  incidental thereto, including but not limited to, construction and maintenance
				  of roads, fuel breaks, firebreaks, stream crossings, landings, skid trails,
				  beds for the falling of trees, fire hazard abatement, reforestation, and site
				  preparation that involves disturbance of soil or burning of vegetation
				  following timber harvesting activities. Such activities include, but are not
				  limited to, bucking, bunching, chipping, debarking, delimbing, felling,
				  forwarding, loading, piling, skidding, slashing, topping and yarding operations
				  performed on timber. Commercial timber harvesting operations do not include the
				  use of timber in processing activities or other activities resulting in the
				  creation of other commercial wood products for sale to others, including,
				  without limitation, milling, planing, carving, paper manufacturing, the
				  treating of wood with creosote or other preservatives to prevent decay or
				  protect against fire, or the packaging of wood chips for use in preparing
				  food.
(2) "Off-road commercial
				  timber harvesting equipment and machinery" means any new or used device, that
				  may be powered by an internal combustion engine, electric motor, or otherwise,
				  that is necessary in complying with any operational requirements of federal,
				  state, or local government laws and regulations and is designed primarily for
				  use off the highways, to propel, move, draw or cut timber in commercial timber
				  harvesting operations. Such items include, but are not limited to, chainsaws,
				  slashers, debarkers, harvesters, forwarders, feller-bunchers, cable yarding
				  equipment, yarders, loading helicopters, chippers, bulldozers; loading
				  equipment used to lift and move the equipment; graders; water trucks and
				  similar logging road building and maintenance equipment; fuel storage
				  equipment, site preparation equipment; all-terrain vehicles; fire fighting and
				  safety equipment; timber harvest preparation equipment; reforestation tools and
				  equipment; loaders; carriages; skidders; mobile metal spars; delimbers;
				  chokers; steel cables; grapples; front-end loaders, and tractors or rubber tire
				  skidders and other equipment used to fell, delimb, cross-cut, measure, sort,
				  bunch, move and load timber for transport to roadside.
Off-road commercial timber harvesting equipment and
					 machinery does not include junction boxes, switches, conduit and wiring,
					 valves, pipes, tubing incorporated into fixed works, buildings, or other
					 structures, whether or not such items are used solely or partially in
					 connection with the operation of equipment and machinery. Off-road commercial
					 timber harvesting equipment and machinery also does not include supplies such
					 as articles of clothing, fuels, real property, materials or fixtures within the
					 meaning of subdivisions (a)(4) and (a)(5), respectively, of Regulation 1521,
					 Construction Contractors, including such items set forth in Appendix A and B of
					 Regulation 1521.
(3) "Parts
				  of off-road commercial timber harvesting equipment and machinery" means:
(A) All component parts and contrivances
				  include, but are not limited to, belts, shafts, pipes, hoses and moving parts,
				  that are parts of off-road commercial timber harvesting equipment and machinery
				  as defined in subdivision (b)(2) that can be separated from the off-road
				  commercial timber harvesting equipment and machinery and replaced. Parts of
				  off-road commercial timber harvesting equipment and machinery do not include
				  items that are consumed (e.g., burned, evaporate, dissolve, dissipate) through
				  the regular use of the off-road commercial timber harvesting equipment and
				  machinery (e.g., gasoline, cleaning agents, solutions, chemicals) which are
				  ordinarily supplies; however, lubricants and fluids not consumed (e.g., engine
				  oil not consumed as part of fuel for a two-stroke engine) is regarded as a
				  component part.
(B) All repair and
				  replacement parts for off-road commercial timber harvesting equipment and
				  machinery as defined in subdivision (b)(2) which replace previous parts and can
				  include parts that are identical to the parts they replace as well as parts
				  that are different from the ones they replace, such as replacement parts added
				  for the purpose of improving or modifying the off-road commercial timber
				  harvesting equipment and machinery, whether purchased separately or in
				  conjunction with a complete machine and regardless of whether the machine or
				  component parts are assembled by a qualified person or another person. Parts of
				  off-road commercial timber harvesting equipment and machinery do not include
				  tangible personal property used in effectuating the repair of any timber
				  harvesting equipment and machinery such as a wrench used to replace a spark
				  plug, except tools used for repair that are designed exclusively for specific
				  off-road commercial timber harvesting equipment and machinery.
(C) All equipment or devices used or required
				  to operate, control, regulate, or maintain the machinery including, without
				  limitation, computers, data processing equipment, and computer software,
				  including both operating programs and application programs. Parts of off-road
				  commercial timber harvesting equipment and machinery do not include tangible
				  personal property used primarily in the administration, management, or
				  marketing of timber harvesting operations.
(4) "Primarily" means used 50 percent or more
				  of the time. As used herein, the qualified property has to be designed for use
				  50 percent or more of the time off-road in commercial timber harvesting
				  operations and be used 50 percent or more of the time in timber
				  harvesting.
(5) "Qualified person"
				  means a person engaged in commercial timber harvesting operations. A qualified
				  person is not required to be engaged 50 percent or more of the time in
				  commercial timber harvesting operations.
(6) "Qualified property" means off-road
				  commercial timber harvesting equipment and machinery, and the parts thereof, as
				  defined in subdivisions (b)(2) and (b)(3) used primarily in timber
				  harvesting.
(7) "Timber" means
				  trees of any species maintained for eventual harvest for forest products or
				  other forest purposes, whether planted or of natural growth, standing or down,
				  including Christmas trees, on privately or publicly owned land, but does not
				  mean nursery stock.
(8)
				  "Timberland" means privately or publicly owned land which is devoted to and
				  used for growing or timber harvesting, or for growing and timber harvesting and
				  compatible uses, and which is capable of growing an average annual volume of
				  wood fiber of at least 15 cubic feet per acre.