Some JCC Boat Owners May Need to Pay Property Taxes

By Desiree Parker Friday, November 18, 2011

James City County’s Commissioner of the Revenue’s office is collecting additional information after receiving a tip that some boat owners in Governor’s Land may not have been taxed, though they have boats docked in the county.

In October, Bradshaw said his office received a tip that the marina numbers collected in January aren’t accurate representations of the boats that are docked there for most of the year. In an email to the Board of Supervisors, County Attorney Leo Rogers said the problem is that “boat owners were moving their boats out of the County on January 1st so they were not being reported to the Commissioner’s office.” Bradshaw sent a letter last week directly to boat owners to get accurate information, and one supervisor has already received a few emails of concern from residents who aren’t happy about Bradshaw’s letter.

The final result of his letter will likely be that “some boat owners who had not paid taxes on their boat will now have to pay taxes,” Rogers wrote.

State law says taxes should be collected by the county “where the vehicle is normally garaged, docked or parked.” Bradshaw’s letter asks owners to share information about where owners’ boats are primarily docked, and if it isn’t in the county he asks owners to provide documentation indicating the primary docking location.

“At this point, all I’ve done is send out letters,” Bradshaw said. “We have not sent bills to anyone. We are trying to properly enforce the tax rules of the county, equitably.”

Supervisor Mary Jones received a few emails from residents who are unhappy about the letter. One resident said his primary concern is that boat owners will move to a less costly locality, which could have a significant financial impact the marina and residents who have equity in it. Some folks who use the marina have already indicated they will likely leave due to this enforcement of tax code, he said.

Bradsaw said some nearby localities have similar tax rates compared to James City County, while others, such as Virginia Beach, have significantly lower rates.

Another resident suggested asking pilots who use the local airport their thoughts on the issue (because they are also subject to the tax law), and also to ask state Sen. Tommy Norment to propose a bill requiring local jurisdictions to prorate taxes based on number of days a boat is docked in an area.

Bradshaw said he hadn’t yet heard from any citizens on the issue. “At this point, they have not contacted me. I am more than happy to sit down and discuss this with them.”

He pointed out that boats are just like cars when it comes to personal property tax: If a car is parked outside the locality for a little while, the owner still pays taxes to the area where the car is considered to be housed.

Bradshaw said he will follow up with the boat owners if he hasn’t heard back from them in 30 days. He also said his office will look at the other marinas in the county to make sure boat owners docked elsewhere in the county are in compliance with tax code.

There are about six marinas in the county, Bradshaw said, and about 2,700 boats currently on the books as owned by county residents.