Virginia Code 58.1-1402: Tax levied
There is hereby levied and imposed, in addition to all other taxes and fees of every kind now imposed by law, a tax upon the sale of every watercraft sold in this Commonwealth, upon the use in this Commonwealth of any watercraft and upon the gross receipts from the lease, charter or other use of any watercraft by a registered dealer in this Commonwealth. The amount of the tax to be collected shall be determined by applying the following rate against the sale price, market value or gross receipts:
Terms Used In Virginia Code 58.1-1402
- Dealer: means any watercraft dealer as defined in § Virginia Code 58.1-1401
- Gross receipts: means the amount received for the lease, charter, or other use of any watercraft. See Virginia Code 58.1-1401
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Sale: means any transfer of ownership or possession of a watercraft by exchange or barter, conditional or otherwise, in any manner. See Virginia Code 58.1-1401
- Sale price: means the total price paid for a watercraft and all attachments thereon and accessories thereto, exclusive of any federal manufacturer's excise tax, without any allowance or deduction for trade-ins or unpaid liens or encumbrances. See Virginia Code 58.1-1401
- Watercraft: means any vessel propelled by machinery whether or not the machinery is the principal source of propulsion. See Virginia Code 58.1-1401
1. Two percent of the sale price of each watercraft sold in the Commonwealth.
2. Two percent of the sale price of each watercraft not sold in the Commonwealth but required to be titled in the Commonwealth. However, if the watercraft is first required to be titled in the Commonwealth six months or more after its acquisition, the tax shall be two percent of the market value of such watercraft at the time it is titled.
3. Two percent of the gross receipts from the lease, charter or other use of any watercraft by a registered dealer.
The maximum tax levied under subdivisions 1 and 2 of this section shall be $2,000. A transaction taxed under subdivision 1 shall not be taxed under subdivision 2 or 3, nor shall the same transaction be taxed more than once under either subdivision 1, 2 or 3. Use of any watercraft by a registered dealer resulting in taxation under subdivision 3 shall not exempt any subsequent sale or use of such watercraft from being taxed under subdivision 1 or 2 if applicable.
Code 1950, §§ 58-685.41, 58-685.44; 1981, c. 405; 1984, c. 675; 1987, c. 516; 1990, c. 666.