Tax Type
Retail Sales and Use Tax
Description
Wooden bins
Topic
Property Subject to Tax
Date Issued
03-25-1982
March 25, 1982
Re: § 58-1118 Application: Sales Tax
Dear ***************************
Reference is made to your recent correspondence requesting a clarification of my determination letter of February 1, 1982.
In the second paragraph of your February 3, 1982 letter you state:
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- The Department's administrative interpretation of §58-441.6(c) was based on the language in that statute as it was originally drawn. Are we to understand that the Department's interpretation remains exchanged under the present language of §58-441.6(c)?
It is the department's position that the wooden bins in question would not qualify for exemption under the present language of Virginia Code § 58-441.6(c) in that the language continues to require that "containers for fruits and vegetables," as well as all other property set out in the section, be "necessary for use in agricultural production for market". The use of the wooden bins in your client's situation is "storage", a function which is not "agricultural production" as that term is used in Virginia Code §58-441.6(c). This has been and continues to be the department’s interpretation of the past and present language of Virginia Code § 58-441.6(c). As set out in my determination letter of February 1, 1982, the amendments to Virginia Code § 58-441.6(c) did not in any way affect the application of the sales tax to the issue of your application for correction.
If you have additional questions, please do not hesitate to let me know.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner