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Question

Is a non resident alien liable for tangible property tax for a british registered and built boat visiting the USA and at present kept in the state of Virginia on route to the UK . I have been told that I am liable for tax under the code of Virginia 58.1-3511

Submitted: 52 days and 10 hours ago.
Category: Tax
Value: $30
Status: CLOSED
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Province/Country relating to question : USA

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Reading the Tax documentation

Posted by LEV 52 days and 10 hours ago.

Answer

Here is the reference to the code section - http://leg1.state.va.us/000/cod/58.1-3511.HTM - § 58.1-3511. Situs for assessment; nonresident exception; refund of tax paid to city or county; apportioned assessment.

 

Any person domiciled in another state, whose motor vehicle is principally garaged or parked in this Commonwealth during the tax year, shall not be subject to a personal property tax on such vehicle upon a showing of sufficient evidence that such person has paid a personal property tax on the vehicle in the state in which he is domiciled.

 

See also Attorney General Opinions in connection to Apportioned Assessment -

http://www.policylibrary.tax.virginia.gov/OTP/policy.nsf/df8f027f3fea473a8525697a00730e76/0654bc8427ae2195852569b300806bff?OpenDocument

and Rulings of the Tax Commissioner in similar matter - http://www.policylibrary.tax.virginia.gov/OTP/policy.nsf/df8f027f3fea473a8525697a00730e76/b5a81bf77e30d97c85256a01006d7a8c?OpenDocument

 

52 days and 10 hours ago.

Reply

The boat will be returning to Southampton UK which I consider to be its permanent residence. The tax commissioner considers the boat to have a degree of permanency in Viginia. I cannot claim a refund of property tax in any other state in the USA. However this boat was subject to VAT under EU law. In your opinion is this foreign boat liable for this property tax

Accepted Answer

Even if you are a non-resident, you are liable for the boat personal property tax if your boat is garaged or parked in Virginia...

Also boats are not eligible for the Commonwealth Car Tax Relief program.

The issue is that determination is made on the locality level - not on the state level - and because they are short on revenue - all tax authorities are very aggressive on all mean of tax collection...

I am not in the position to determine your liability. It would depends on the time period the boat remains in Virginia (and in the US) and owner's status in the US.

The fact of the boat was subject to VAT under EU law - has no affect on the Virginia situs for the assessment determination.

 

I suggest having a local tax person to represent you with the locality. If the comprehensive person speak on your behalf - they might act differently.

 

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Expert: LEV
Pos. Feedback: 99.3 %
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Answered: 10/1/2009

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