Tax Type
Recordation Tax
Description
Protective Claim; Refund Request for Direct Pay Permit
Topic
Basis of Tax
Date Issued
09-12-2001
September 12, 2001
Re: § 58.1-1824: Retail Sales and Use Tax
Dear *****
This is in response to your letter of July 16, 2001, in which you seek a protective claim for refund of the dealer's discount on taxes paid by******** (the "Taxpayer") via its Direct Pay Permit Sales and Use Tax Return, Form ST-6.
In Reynolds Metals v. Commonwealth of Virginia, the Augusta County Circuit Court determined that the dealer's discount authorized by Code of Virginia § 58.1-622 is available to taxable items purchased with a direct pay permit. The discount is available: (1) only to those direct pay permit holders who hold a Certificate of Registration under Code of Virginia § 58.1-613, and (2) only to those returns, Form ST-6, that are timely filed. Refunds of the unclaimed dealer's discount on previously filed returns will be allowed within the statute of limitations set out in Code of Virginia
§ 58.1-1823, provided that these two criteria are satisfied.
In the instant case, it appears that the Taxpayer holds Certificates of Registration (thus satisfying the first of the two criteria noted above). The determination as to whether the Taxpayer's Direct Pay Permit Sales and Use Tax Returns were timely filed will be made when the Taxpayer applies for its refund. The Taxpayer's refund request should be sent to the attention of ****** at the Office of Customer Services, Post Office Box 1115, Richmond, Virginia 23218-1115. When applying for the refund, please include a copy of this letter.
Code of Virginia § 58.1-1824 authorizes the Tax Commissioner to issue protective claims for refunds. Under this authority, I will extend the statute of limitations for refund of the dealer's discount for taxes paid by the Taxpayer on timely filed Direct Pay Permit Sales and Use Tax Returns for the period June 1998 and subsequent. This extension will expire one year from the date of this letter.
Please call ***** in the department's Appeals and Rulings Office at ***** if you have any questions regarding this letter. For questions regarding the refund process, please call ***** at *****. .
Sincerely,
Danny M. Payne
Tax Commissioner
ARO/35668I
Rulings of the Tax Commissioner