Tax Type
Retail Sales and Use Tax
Description
Protective Claim; Direct Pay Permit Issue
Topic
Basis of Tax
Date Issued
09-14-2001
September 14, 2001
Re: § 58.1-1824 Protective Claim: Retail Sales and Use Tax
**************************** Direct Pay Permit no.
**************************** Direct Pay Permit no.
**************************** Direct Pay Permit no.
Dear *****
This is in response to your letters of August 16, 2001, in which you have filed protective claims for refunds of the dealer's discount on taxes paid by ***** (the "Taxpayers") via their Direct Pay Permit Sales and Use Tax Returns, 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.
My initial research indicates that the Taxpayers no longer hold Certificates of Registration under Code of Virginia § 58.1-613. It appears that ***** were at one time registered under Certificate of Registration account numbers ***** respectively. These accounts were ended January 1996. ***** was registered under account *****, and that account was ended February 1991. If this is the case, the Taxpayers' refund request will be denied.
However, I will certainly review any documentation that you can provide showing that the Taxpayers satisfied the Certificate of Registration criteria. In the meantime, and pending such documentation, I will extend the statute of limitations for refund of the dealer's discount for taxes paid by the Taxpayers on timely filed Direct Pay Permit Sales and Use Tax Returns for the period July 1998 and subsequent. This extension will expire one year from the date of this letter.
The Taxpayers' refund request, along with a copy of this letter and evidence that the Taxpayers hold Certificates of Registration, should be sent to the attention of ***** in the department's Office of Customer Services, Post Office Box 1115, Richmond, Virginia 23218-1115.
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/36553I
Rulings of the Tax Commissioner