Virginia
In the Circuit Court of the City of Richmond, John Marshall Court Building
MECHANICSVILLE CONCRETE LLC
(d/b/a Powhatan Ready Mix),
Applicant,
v. Case No.: CL20-2971
VIRGINIA DEPARTMENT OF TAXATION
Respondant,
ORDER
On November 8, 2021, the parties appeared in person and by Counsel on both parties' Motions for Summary Judgment of Applicant's Application for Correction of Erroneous Assessment and Claim for Refund. Upon consideration of the arguments, memorandum, pleadings, and joint stipulation of facts, the Court FINDS the following:
a) Sales of ready-mix concrete are properly sourced to the locality of Applicant's place of business in Norfolk, Virginia pursuant to 23 VAC 10-210-2070, where "the sale of tangible personal property.. is sourced to that [dealer's] place of business... " and "place of business" is defined as "the location in Virginia that first takes the purchaser's order." The language of this regulation is consistent with Virginia Code Section 58. 1-605 and 58.1- 605;
b) None of the provisions of 23 V AC 10-210-360 discuss the souring of sales of ready-mix concrete and does not conflict with the sourcing provisions of 23 V AC 10-210-2070;
c) The Tax Commissioner's prior determinations referenced by Applicant do not discuss the sourcing of sales of ready-mix concrete. Specifically, P.D. 82-65 and P.D. 13-100 did not address the sourcing issue before the Court;
d) Sales sourced to the two regions in question are taxed at the same rate, and therefore the Department of Taxation's ruling does not discriminate against Applicant and its customers. Accordingly, the Court hereby GRANTS Respondents Motion for Summary Judgment,
DENIES Applicant's Motion for Summary Judgement, and SUSTAINS the Department of Taxation's assessment and determination as to the appropriate situs for sales of ready-mix concrete.
Pursuant to Rule I: 13 of the Supreme Court of Virginia, the Court dispenses with the parties' endorsement of this Order.
The Clerk is directed to forward a certified copy of this Order to all parties. It is so ORDERED.
ENTER: 11/12/21 W. Reilly Marchant, Chief Judge