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- The Honorable Walter A. Stosch
Senate Majority Leader
Issue Presented
You ask whether a locality may assess personal property tax on a boat that weighs over 10,000 pounds when the owner docks the boat in the Commonwealth for less than six months during a year.
Response
It is my opinion that a locality may not assess a personal property tax on a boat weighing more than 10,000 pounds if the boat is garaged, docked or parked in the Commonwealth less than six months a year. The situs required to impose personal property taxes on a boat weighing over 10,000 pounds is not established unless the boat is physically located within the Commonwealth for a period of six months or more.
Background
You relate that an individual domiciled in Virginia owns a boat weighing more than 10,000 pounds. You further relate that the boat is sometimes docked within the Commonwealth and, at other times, outside the Commonwealth. You advise that the boat is not docked at any Virginia locality for more than six months. In fact, the boat is docked outside the Commonwealth for the majority of a year.
Applicable Law and Discussion
Chapter 35 of Title 58.1, §§ 58.1-3500 through 58.1-3522, governs local taxation of tangible personal property. Specifically, § 58.1-3511(A), which determines the situs of tangible personal property for purposes of local taxation,1 provides:-
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- The situs for the assessment and taxation of tangible personal property … shall in all cases be the county, district, town or city in which such property may be physically located on the tax day.[2] However, the situs for purposes of assessment of motor vehicles, travel trailers, boats and airplanes as personal property shall be the county, district, town or city where the vehicle is normally garaged, docked or parked; however, the situs for vehicles with a weight of 10,000 pounds or less registered in Virginia but normally garaged, docked or parked in another state shall be the locality in Virginia where registered. [Emphasis added.]
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The situs of a boat weighing in excess of 10,000 pounds is determined on the basis of where it is normally garaged, docked or parked.5 This Office has concluded that the phrase "normally garaged, docked or parked" means that the personal property being taxed must have been located in a particular jurisdiction for six months or more.6 Therefore, under the circumstances you pose, the boat is not "normally garaged, docked or parked"7 in Virginia.
Conclusion
Accordingly, it is my opinion that a locality may not assess a personal property tax on a boat weighing more than 10,000 pounds if the boat is garaged, docked or parked in the Commonwealth less than six months a year. The situs required to impose personal property taxes on a boat weighing over 10,000 pounds is not established unless the boat is physically located within the Commonwealth for a period of six months or more.11997 Op. Va. Att’y Gen. 210, 210.
2Tax day for tangible personal property is generally "January 1 of each year." Va. Code Ann. § 58.1-3515 (Michie Repl. Vol. 2000).
3See § 58.1-3511(A) (Michie Repl. Vol. 2000).
4Op. no. 01-099 to Hon. M. Kirkland Cox, H. Del. Mbr., (Jan. 11, 2002), available at http://www.vaag.com/media%20center/Opinions/2002opns/01-099.htm.
5See § 58.1-3511(A).
6Op. Va. Att’y Gen.: 1990 at 264, 264-65; 1987-1988 at 592, 593; 1986-1987 at 329, 330; 1979-1980 at 353, 354.
7Section 58.1-3511(A).
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- The Honorable Walter A. Stosch