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 § 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
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
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