Tax Type
Tire Tax
Description
Virginia Tire Recycling Fee
Topic
Clarification
Exemptions
Date Issued
04-01-2010
May 4, 2010
Re: Request for Ruling
Virginia Tire Recycling Fee
Dear *****:
This is in reply to your correspondence in which you request an updated ruling in regard to the application of the Virginia tire recycling fee to state agencies and political subdivisions.
In Public Document (P.D.) 91-101B, the Department clarified its policy on the application of the Virginia Tire Tax to purchases of tires by state agencies and political subdivisions of the Commonwealth. In that document, the Tax Commissioner ruled that "all tires purchased by the Commonwealth of Virginia and any political subdivision thereof are exempt from the tax." The exemption included replacement truck tires.
Since P.D. 91-101B was issued, the tire tax has been changed to the Virginia Tire Recycling Fee. Chapter 6.1 of Title 58.1 of the Code of Virginia reflects this change; however, the provisions are similar to those under the Virginia Tire Tax and addressed in P.D. 91-101B. You ask if the policy set forth in P.D. 91-101B is still valid.
Pursuant to Va. Code § 58.1-644, "[t]he provisions of Chapter 6 (§ 58.1-600 et seq.) of this title [Title 58.1] apply to this chapter [Chapter 6.1], mutatis mutandis, except as herein provided and except that replacement truck tires shall be subject to the tax imposed pursuant to this chapter." [Inserts added.] Among other things, this means the exemptions from the retail sales and use tax are also applicable to the Virginia Tire Recycling Fee.
Virginia Code § 58.1-609.1 4 exempts from the retail sales and use tax tangible personal property for use or consumption by the Commonwealth or any political subdivision of the Commonwealth. Therefore, all tires (including replacement truck tires) purchased by Virginia state agencies and political subdivisions are exempt from the Virginia Tire Recycling Fee. Replacement truck tires purchased by other entities that are exempt from the retail sales and use tax remain subject to the Virginia Tire Recycling Fee.
I trust this ruling addresses your concerns. Questions regarding the Virginia Tire Recycling Fee may be directed to the Department's Office of Customer Services at (804) 367-8037.
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- Sincerely,
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- Janie E. Bowen
Tax Commissioner
- Janie E. Bowen
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AR/1-4373903836
Rulings of the Tax Commissioner