                                 CODE OF VIRGINIA

BASIS OF TAX; ESTIMATE OF TAX; PENALTY FOR MISREPRESENTATION (§ 58.1-1403)

A. The Tax Commissioner shall assess and collect the tax for the use or sale of
a watercraft pursuant to subdivisions 1 and 2 of &#xA7; 58.1-1402 upon the basis
of the sale price of such watercraft.
			Any person who sells a watercraft in this Commonwealth shall supply the buyer
with an invoice, signed by the seller or his representative, which shall state
the sale price of the watercraft. The buyer shall present such invoice to the
Tax Commissioner with his return and payment of the tax.

B. The Tax Commissioner shall assess and collect the tax on the lease or charter
of a watercraft by a registered dealer on the basis of the gross receipts
arising from all transactions pertaining to the lease, charter or other use of
such watercraft during the preceding calendar month. The dealer shall submit a
return to the Tax Commissioner showing the gross receipts arising from such
transactions. The dealer shall remit with such return the amount of tax due.

C. In any case where (i) the invoice is not available, (ii) the Tax Commissioner
has reason to believe that an invoice or return does not reflect the true sales
price, or (iii) the watercraft was purchased more than six months prior to its
use or storage in the Commonwealth, the Tax Commissioner may assess the tax in
accordance with such publications or other data as are customarily employed in
ascertaining the maximum sale price of watercraft. Where the Tax Commissioner
finds that a charge for the rental, lease, charter or use of watercraft has been
lower than the fair market value of such use, the Tax Commissioner may estimate
a fair price in accordance with the cost of the watercraft, the cost of
maintenance, the normal rental value as shown in similar transactions, or other
relevant data.
			Any person who knowingly misrepresents the value of a watercraft or the
amount of tax due to the Tax Commissioner or any return or invoice shall be
guilty of a Class 1 misdemeanor.

HISTORY: Code 1950, §§ 58-685.44, 58-685.47; 1981, c. 405; 1984, c. 675.