                                 CODE OF VIRGINIA

BASIS OF TAX; ESTIMATE OF TAX; PENALTY FOR MISREPRESENTATION (§ 58.1-1503)

A. The Tax Commissioner shall levy and collect the tax for the use or sale of an
aircraft pursuant to subdivisions 1 and 2 of &#xA7; 58.1-1502 upon the basis of
the sale price of such aircraft.
			Any person who sells an aircraft in the Commonwealth shall supply the buyer
with an invoice, signed by the seller or his representative, which shall state
the sale price of the aircraft. The buyer shall present such invoice to the Tax
Commissioner with his return and payment of the tax.

B. The Tax Commissioner shall levy and collect the tax on an aircraft licensed
for commercial use and held by a dealer who has elected to be taxed under
subdivision 3 of &#xA7; 58.1-1502 on the basis of the gross receipts arising
from all transactions involving the rental or use of such aircraft during the
preceding calendar month. The dealer shall submit a return to the Commissioner
on a form prescribed by him, showing the gross receipts from such transactions
at the time that the dealer remits his tax payment.

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 gross receipts, or (iii) the aircraft was purchased more than six
months prior to its use or storage in this Commonwealth, the Commissioner may
assess the tax in accordance with such publications or other data as are
customarily employed in ascertaining the maximum sale price of aircraft. Where
the Commissioner finds that a charge for the rental or use of aircraft has been
lower than the fair market value of such rental or use, the Commissioner may
estimate a fair price in accordance with the cost of the aircraft, 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 an aircraft or the amount
of tax due to the Commissioner or on any return or invoice shall be guilty of a
Class 1 misdemeanor.

HISTORY: Code 1950, §§ 58-685.30, 58-685.33; 1974, c. 431; 1975, c. 424; 1977,
c. 396; 1984, c. 675.