D.C. Mun. Regs. tit. 9, r. 9-476
Current through Register Vol. 71, No. 43, October 25, 2024
Rule 9-476 - ADMISSIONS TO BOAT TOURS AND BOAT CRUISES, RENTALS OF BOATS, AND SALES OF FOOD, DRINKS, AND BEVERAGES ON BOATS476.1The charges for admission to public events subject to gross sales tax under D.C. Official Code § 47-2001(n)(1)(H) shall be subject to gross sales tax when such public events occur on a boat.
476.2If the services of a captain or operator are provided as part of the fee for the charter of any boat, no rental of the boat has occurred. If the boat is rented from one person and the services of the captain or operator rented from another, the gross sales tax shall apply to the boat rental.
476.3A boat rented without the services of a captain or operator, including a bareboat charter, is a sale in which possession of tangible personal property is transferred, and the gross sales tax shall apply to such rentals.
476.4The taxability of food and drink or alcoholic beverages sold on a boat is determined as follows:
(a) Gross receipts from the sales of food and drink or alcoholic beverages if made in any boat operating within the District in the course of commerce between the District and a state are exempt from the gross sales tax. Generally, a boat is operating in the course of commerce between the District and a state if the boat ties up at a dock outside of the District where any or all passengers or crew disembark or if any or all of the boat's passengers or crew disembark the boat by other means and go ashore outside of the District. Example: A boat that departs and returns to the same or different location in the District and does not tie up at a dock or allow passengers to disembark at a location outside of the District shall not be considered to be in the course of commerce between the District and a state, even if the boat enters another jurisdiction's waters.
(b) In order to substantiate the exemption, a taxpayer must prove, via his or her books and records, that a boat is in the course of commerce between the District and a state. To the extent the taxpayer's books and records do not substantiate that a boat is in the course of commerce between the District and a state, all sales of food and drink or alcoholic beverages allocated to the District shall be presumed taxable.(c) For boats not operating in the course of commerce between the District and a state, a taxpayer shall substantiate in his or her books and records the allocation of sales of food and drink or alcoholic beverages between the District and non-District waters. All such allocations must be reasonable. To the extent the allocation of sales of food and drink or alcoholic beverages cannot be substantiated by the taxpayer's books and records or the allocation on the taxpayer's books is unreasonable, the Deputy Chief Financial Officer shall allocate the sales to the District.476.5If charges for admission to public events are included in the ticket price of a boat tour or boat cruise, but not separately stated or identified, the entire ticket price shall be subject to gross sales tax at the rate applicable to charges for admission to public events. If charges for taxable food and drink or alcoholic beverages are included in the ticket price of a boat tour or boat cruise, but not separately stated or identified, the entire ticket price shall be subject to gross sales tax at the rate applicable to charges for food and drink. If both charges for admission to public events and charges for taxable food and drink or alcoholic beverages are included in the ticket price of a boat tour or boat cruise, but not separately stated or identified, the entire ticket price shall be subject to gross sales tax at the rate applicable to food and drink. However, this rule does not apply where the value of the food and drink or alcoholic beverage included in the ticket price is de minimis.
476.6For the purposes of this section, the following definitions apply.
(a)"Bareboat charter" means providing a boat only, exclusive of crew.(b)"Boat" means a vessel for transport by water and includes, but is not limited to, ships, yachts, sailboats, rowboats, motorboats, kayaks, paddleboats, and canoes.(c)"Captain or operator" means a person who is master or commander of a boat with passengers or crew, or both.(d)"Dock" means a structure or group of structures involved in the handling of boats or ships, on or close to a shore and includes piers and wharfs.D.C. Mun. Regs. tit. 9, r. 9-476
Final Rulemaking published at 61 DCR 4000 (April 18, 2014)Authority: D.C. Official Code § 47-2023 (2012 Repl.), Section 201(a) of the 2005 District of Columbia Omnibus Authorization Act, approved October 16, 2006 (120 Stat. 2019; Pub.L. 109-356, D.C. Official Code § 1-204.24 d (2012 Repl.)), and the Office of the Chief Financial Officer Financial Management and Control Order No. 00-5, effective June 7, 2000.