Revenue and Taxation Code section 12002

“Ocean marine insurance” means insurance written within this state upon hulls, freights, or disbursements, or upon goods, wares, merchandise, and all other personal property and interests therein, in course of exportation from, importation into any country, or transportation coastwise, including transportation by land or water from point of origin to final destination in respect to, appertaining to, or in connection with, any and all risks or perils of navigation, transit or transportation, any portion of which exportation, importation, transportation, navigation, transit, or shipment is upon any ocean, and upon the property while being prepared for and while awaiting shipment, and during any delays, storage, transshipment or reshipment incident to or in connection with the shipment or transportation. “Ocean marine insurance” includes marine builders and war-risk insurance.
“Ocean marine insurance” does not, for the purpose of taxation of such insurance as provided in subdivision (g) of Section 28 of Article XIII of the Constitution, include insurance written upon:

(a)

A hull, which is not a documented vessel registered with the Transportation Department of the United States; or

(b)

Anything carried in, attached to, used in transportation of or any risk written in connection with any hull defined in (a) above, unless:
The insurance is upon a customary ocean marine form and such hull and the risks mentioned in (b) above are covered for one who is in the business of:

(1)

Renting or chartering boats;

(2)

Using boats himself for commercial purposes; or

(3)

Building or repairing boats.
Insurance not included in “ocean marine insurance” by this section shall be taxed in accordance with the other provisions of subdivision (g) of Section 28 of Article XIII of the Constitution.
The 1969 amendment of this section shall be construed as a restatement and continuation of the law existing prior to such amendment.

Source: Section 12002, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=RTC§ionNum=12002.­ (accessed May 10, 2025).

Last Updated

May 10, 2025

§ 12002’s source at ca​.gov