Document Number
01-58
Tax Type
Retail Sales and Use Tax
Description
Protective claim for refund of dealer's discount taxes paid by Direct Pay Permit
Topic
Payment and Refund
Statute of Limitations
Date Issued
05-14-2001
May 14, 2001

Re: § 58.1-1824: Retail Sales and Use Tax


Dear ****:

This is in response to your letter of April 11, 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.

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 March 1998 and subsequent. This extension will expire one year from the date of this letter.

In the instant case, the Taxpayer holds multiple Certificates of Registration. 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.

The department is in the process of revising Form ST-6 to accommodate a dealer's discount to qualified taxpayers. It is expected that the revised form will be available in time for filing the June 2001 Direct Pay Permit Sales and Use Tax Return.

Please call **** in the department's Office of Tax Policy at ***** if you have any questions regarding this letter. For questions regarding the refund process, please call **** at ****.


Sincerely,


Danny M. Payne
Tax Commissioner


Rulings of the Tax Commissioner

Last Updated 08/25/2014 16:46