Tax Type
Retail Sales and Use Tax
Watercraft Sales and Use Tax
Description
Boat rental center
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
08-18-1993
August 18, 1993
Re: Request for Ruling: Retail Sales & Use Tax
Dear***********
This will reply to your letter of May 27, 1993 in which you seek a ruling regarding your company's responsibilities for retail or watercraft sales and use tax due to its activities within Virginia.
FACTS
The Taxpayer is a national franchisor of powerboat rental centers. It recently opened two centers in the states. The boats located in these centers are operated strictly on a rental basis and are not bought or offered for sale in Virginia. You seek a ruling as to whether the Taxpayer is required to pay the retail sales and use tax or watercraft sales and use tax when registering and titling the boats in the state.
DETERMINATION
The department recently addressed a similar situation in P.D. 93155 (7/23/93), copy enclosed. As the letter indicates, persons regularly engaged in the lease or rental of watercraft for subsequent lease, rental or sale may purchase such watercraft exempt of the tax. The Taxpayer, however, must charge the appropriate tax on its rentals as set forth in P.D. 93-155.
I trust this answers your questions, but should you have any others, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/7047H
Related Documents
Rulings of the Tax Commissioner