Tax Type
Retail Sales and Use Tax
Description
Utility Consumer Service; Orchard sales
Topic
Local Taxes Discussion
Date Issued
12-03-1968
This is in reply to your letter of November 25, 1968, in which you pose two questions as follows:
- "1. A part time farmer has an orchard that produces apples. He has no stand or place to sell them. He does haul away several truck loads and sells to people in mining camps who want to buy them in any quantity they want. Does this farmer have to collect the sale or use tax from his customers?
- "2. Does the Board of Supervisors have the authority to place a tax on raw materials in Dickenson and Russell Counties? These raw materials would be coal, oil, timber and gas, or would they have the power to tax utilities such as telephone, and power?'
In answer to question 1, the sales tax applies to the retail sales of farm products, whether sold by farmers, peddlers or at a public market, roadside stand, farm or any other place, provided such activity is regular or recurring and not occasional. Since the farmer you describe sells several truck loads of apples by individual quantities at retail, I am of the opinion that these sales are regular and recurring and are subject to the Sales tax.
Concerning your second question, I am aware of no statutory authority whereby the Board of Supervisors may levy a severance tax on the raw materials you mention. The counties may, however, under § 58-587.1 of the Code, as amended, impose a tax on the consumers of services provided by telegraph and telephone companies and by § 58-617.2 of the Code, as amended, impose a tax on the consumers of the services provided by water or heat, light and power companies.
Attorney General's Opinion