Tax Type
Retail Sales and Use Tax
Description
Occasional sales to state employees
Topic
Exemptions
Date Issued
09-18-1984
- September 18, 1984
Re: Request for Ruling: Sales and Use Tax
Dear ****
This will reply to your letter of September 6, 1984 requesting a ruling an the applicability of the sales and use tax to the sale of t-shirts by the *****.
Facts
***** (hereinafter *****) was established by Executive Order in 1982. The ***** receives no state funds and is comprised of volunteers appointed by the Governor. The ***** operates as an arm of the Governor's office and must use established state purchasing procedures for procurement purposes.
The ***** is planning to sell t-shirts to state employees during one two-week period during 1984,
Funds for the purchase of these shirts will be placed in a special fund of the Governor's office.
Determination
Va. Code § 58-441.6(m) provides an exemption from the sales and use tax for an "occasional sale" which is a sale which is not of sufficient scope or number to require a Certificate of Registration. Because this sale will take place only over a very brief period of time on one occasion, we agree that it does constitute an occasional sale within the meaning of § 58-441.6(m). Consequently, the ***** will not be required to collect sales tax on the sale of the t-shirts.
The tax application to the purchase of the items is governed by the provisions of Va. Code § 58-441.6(p) which exempts tangible personal property purchased for use or consumption by the Commonwealth. Therefore, no tax will be applicable to the purchase of the shirts.
If you have any further questions, please let us know.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner