Tax Type
Retail Sales and Use Tax
Description
Day care center and tax on its fixed asset purchases; Documentation absent
Topic
Records/Returns/Payments
Tangible Personal Property
Date Issued
03-23-2012
March 23, 2012
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear *****:
This reply is in response to your letter submitted on behalf of ***** (the "Taxpayer"), in which you request correction of the retail sales and use tax assessment issued for the period June 2007 through May 2010. I apologize for the delay in responding to your letter.
FACTS
The Taxpayer operates a day care center and was assessed use tax on its fixed asset purchases. The Taxpayer states in its protest that sales tax was paid on several assessed purchases; however no documentation is offered to support the claim.
DETERMINATION
Virginia Code § 58.1-604 imposes a tax upon the use and consumption of tangible personal property in the Commonwealth of Virginia. The tax is imposed on the cost price of each article of tangible personal property used or consumed in the state. As the Taxpayer has not provided any documentation that evidences the payment of the tax on its purchases of the assets, I find that use tax was properly assessed in the audit. Accordingly, the Taxpayer has provided no basis to revise the assessment.
The Code of Virginia section cited is available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's website. 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
AR/1-4806407364.M
Rulings of the Tax Commissioner