Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 230 - WATERCRAFT SALES AND USE TAX › Section 23VAC10-230-30 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter shall
				  have the following meanings:
"Attachments thereon and accessories thereto" means all
				  tangible personal property that is physically attached to watercraft or
				  property that is customarily used in watercraft, whether or not affixed to the
				  structure of the watercraft, and which was transferred in the same transaction
				  as the watercraft as a part of the watercraft sale.
"Commissioner" means the Tax Commissioner.
"Current market value" means the value of a watercraft
				  considering age, make, model, and included accessories in accordance with such
				  publications or other data as are customarily employed in ascertaining the
				  sales price of used watercraft.
"Dealer" means watercraft dealer as defined in §
				  29.1-801 of the Code of Virginia.
"Person" means every natural person, firm, partnership,
				  association, corporation, or other entity.
"Sale" means any transfer of ownership or possession, or
				  both, exchange, barter, conditional or otherwise, in any manner or by any means
				  whatsoever, of a watercraft. The term "sale" includes a transaction whereby
				  possession is transferred but title is retained by the seller as security. The
				  term "sale" also includes any lease or rental for a period of time equal to or
				  exceeding 80% of the remaining life of the watercraft, and any lease or rental
				  requiring total payments by the lessee during the lease or rental period which
				  substantially equal the value of the watercraft. The remaining life of the
				  watercraft shall be estimated in accordance with generally accepted accounting
				  principles, considering factors such as physical deterioration, normal
				  obsolescence, maintenance, and intensity of use.
"Sales price" as used in this chapter means the total price
				  paid for a watercraft and all attachments thereon and accessories thereto
				  including all installation and labor charges, without any allowance or
				  deduction for trade-ins or unpaid liens or encumbrances. Such tangible personal
				  property transferred other than in the same transaction with the watercraft
				  will be subject to the retail sales and use tax, except boat motors that will
				  be placed on a watercraft. Charges for lettering and get-ready charges
				  (cleaning, washing and preparing) are also included in the sales price when
				  made in the same transaction with the watercraft transfer. However, excluded
				  from the sales price are charges for federal manufacturer's excise tax,
				  registration and titling fees, insurance, and gasoline, when separately stated
				  on the invoice.
"Titled with the Department of Game and Inland Fisheries"
				  means titled with the Department of Game and Inland Fisheries pursuant to
				  § 29.1-713 of the Code of Virginia.
"Watercraft" means any vessel propelled by machinery whether
				  or not the machinery is the principal source of propulsion. The term shall also
				  include any sail-powered vessel that has an overall length in excess of 18 feet
				  in length measured along the centerline. The term shall not include a seaplane
				  on the water or a watercraft that has a valid marine titling document issued by
				  the United States Coast Guard (USCG). See subsection D of
				  23VAC10-230-80 for more
				  information on USCG marine titling. Any motor used to power a watercraft shall
				  be deemed a "watercraft" for purposes of the tax. The term "overall length" as
				  used here is the horizontal distance, measured along the centerline, that is,
				  between the foremost part of the stem and the aftermost part of the stern,
				  excluding bowsprits, bumpkins, rudders, outboard motor, and similar fittings or
				  attachments.
Statutory Authority
§§ 58.1-203 and 58.1-1401 of the Code of
					 Virginia.