Section 30. Definitions

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.

Historical Notes

Derived from VR12.3.58-685.40, eff. July 30, 1982; amended, Volume 25, Issue 08, eff. March 8, 2009.

Statutory Authority

§§ 58.1-203 and 58.1-1401 of the Code of Virginia.