Ladd

This is an appeal from a judgment denying recovery in a suit for refund of sales and use taxes paid by appellant pursuant to Revenue and Taxation Code section 6933. We affirm the judgment.

The matter at bench reaches us on stipulated facts. Appellant is engaged in the construction and rental of powered houseboats, tangible personal property within the meaning of the Sales and Use Tax Law. Prior to August 1, 1965, appellant constructed houseboats from raw materials purchased by him. As required by the then applicable provisions of the Sales and Use Tax Law, appellant either paid sales tax reimbursement to the suppliers of raw materials to him or, pursuant to an option in the law, paid a use tax measured by the sales price of raw materials used by him in the construction of the boats. All houseboats here involved were completed and rented to appellant’s customers prior to August 1, 1965. A lease of tangible personal property was not then a taxable “sale" so that lease or rental income was not includable in the measure of sales tax, and possession of rented property was not a taxable use.

Effective August 1, 1965, Revenue and Taxation Code section 6006 was amended. As…