Tax Type
Intangible Personal Property Tax
Description
Repurchase agreements
Topic
Exemptions
Date Issued
07-31-1984
July 31, 1984
Re: § 58-1118 Application
Capital Not Otherwise Taxed
For the Years 1980, 1981 and 1982
Dear ***********
This ruling is issued in response to your application under § 58-1118,Code of Virginia, and additional information submitted.
FACTS
Taxpayer contends that repurchase agreements are not includible as a part of taxable capital. In audit, the Department included the value of the repurchase agreements in other taxable property. In protest, Taxpayer takes the position that repurchase agreements should be treated as money and excluded from taxable capital.
DETERMINATION
Taxpayer submitted evidence which substantiated that the specific repurchase agreements included in taxable capital are the equivalent of cash on deposit within the purview of Commonwealth v. Stringfellow, 173 Va. 204, 4 S.E.2d 357 (1939). Capital of ***** subject to tax on capital not otherwise taxed will accordingly be adjusted and assessments will be revised to reflect the adjustment. The revised assessments will be due and payable upon receipt.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner