Tax Type
Retail Sales and Use Tax
Description
Commercial waterman; Purchase of boat motor, machinery and tools
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
07-19-1991
July 19, 1991
Re: Request for Ruling: Sales and Use Tax
Dear****************
This will reply to your letter of February 22, 1991 in which you request a ruling as to the sales tax application to a motor that is in excess of 25 horsepower which is purchased by a commercial waterman for installation on a watercraft.
FACTS
As provided in your letter, a commercial waterman is purchasing a boat which is over 14 feet in length, weighs over 500 pounds, and is powered by a motor in excess of 25 horsepower. The commercial waterman, in this instance, is purchasing the vessel from one dealer and the motor from another. You are inquiring whether the purchase of the motor is subject to the 4 1/2% retail sales tax.
RULING
Va. Code §58.1-608(2)(d) provides an exemption from the retail sales and use tax for the following:
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- Machinery, tools, equipment, materials or repair parts therefor or replacement thereof, fuel or supplies, fishing boats not otherwise exempt under this section, marine engines installed thereon or outboard motors used thereon, and all replacement or repair parts in connection therewith, provided the same are sold to and purchased by watermen for use by them in extracting fish, bivalves or crustaceans from waters for commercial purposes.
In the case at hand, the purchaser is a commercial waterman and would enjoy the commercial waterman exemption. Therefore, he may purchase the motor tax exempt under Sales and Use Tax Exemption Form ST-16 (copy enclosed).
If you should have any questions, please feel free to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner