Tax Type
Retail Sales and Use Tax
Description
Set-up components; manufactured home; motor vehicle sales and use tax rate
Topic
Basis of Tax
Computation of Tax
Date Issued
08-05-2011
August 5, 2011
Re: Request for Ruling: Retail Sales and Use Tax
Dear *****:
This is in response to your letter in which you request confirmation as to the continued validity of the set-up component policy set out in Public Document (P.D.) 91-125 (7/19/91) and P.D. 98-100 (5/22/98).
In P.D. 10-268 (12/16/10) that was recently issued to your organization, the Department made reference to P.D. 91-125 and P.D. 98-100, but made no policy chance in regard to set-up components. I would note a tax rate change, however. In P.D. 91-125, the Tax Commissioner indicated that all set-up materials sold after the initial sale of a manufactured home are taxed at a 4½% retail sales and use tax rate. In P.D. 10-268, the Tax Commissioner indicated that all set-up materials sold after the initial sale of a manufactured home are now taxed at a 5% retail sales and use tax rate. This higher sales tax rate is the only change noted because the retail sales and use tax rate had increased since the issuance of P.D. 91-125.
Pursuant to Va. Code § 58.1-2402, the motor vehicle sales and use tax applicable to a manufactured home as defined in Va. Code § 36-85.3 is still imposed at a 3% rate. Thus, all set-up components attached to or purchased at the time such manufactured home is sold as to become an integral part of such home and included in the sales price of such home is taxed at the motor vehicle sales and use tax rate of 3%.
The policy set out in P.D. 98-100 for septic tanks, wells, driveways, patios, walkways, decks, outdoor pole lighting, and entrance/exit stairs or steps remains in effect.
This response is based on the facts provided as summarized above. Any change in facts or the introduction of new facts may lead to a different result.
The Code of Virginia sections and public documents cited are available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's web site. If you have any questions about this determination, you may contact ***** in the Department's Office of Tax Policy, Appeals and Rulings, at *****.
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- Sincerely,
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- Craig M. Burns
Tax Commissioner
- Craig M. Burns
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AR/1-4721331815.R
Rulings of the Tax Commissioner