Tax Type
Retail Sales and Use Tax
Description
Fence sales and installation
Topic
Collection of Tax
Date Issued
06-06-1985
June 6, 1985
Re:Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of September 4, 1981, in which you request a ruling on the applicability of the sales and use tax to the operations of *****.
Interpreting Section 58.1-610.D of the Code of Virginia, Section 630-10-27.G of the Virginia Retail Sales and Use Tax Regulations provides:
A person selling and installing tangible personal property that becomes real property after installation is generally considered a contractor, except that a retailer selling and installing fences, venetian blinds, window shades, awnings, storm windows and doors, floor coverings (as distinguished from floors themselves), cabinets, kitchen equipment, window air conditioning units or other like or comparable items is not classified as a using or consuming contractor with respect to them.
For purposes of the above provision, a retailer is defined in the regulation as "any person who maintains a retail or wholesale place of business, an inventory of the aforementioned items (fences, awnings, storm windows and doors, floor coverings, etc.) and/or materials which enter into or become a component part of the aforementioned items, and who performs installation as part of or incidental to the sale of the aforementioned items."
From the information provided in your letter, it appears that your client does maintain retail places of business from which sales of fencing materials, maintains inventories of fencing materials, and makes installation of fencing materials. Based upon the foregoing, I feel that ***** must be deemed a retailer for purposes of the sales and use tax. As this ruling supersedes the tentative ruling provided to your client on December 23, 1983, will henceforth need to collect the sales and use tax from persons for whom fences are installed. Of course, sales of fencing to governmental entities and nonprofit institutions of learning are generally exempt from the tax when the purchaser provides your client a valid Certificate of Exemption.
Sincerely,
W. H. Forst
Tax Commissioner
Re:Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of September 4, 1981, in which you request a ruling on the applicability of the sales and use tax to the operations of *****.
Interpreting Section 58.1-610.D of the Code of Virginia, Section 630-10-27.G of the Virginia Retail Sales and Use Tax Regulations provides:
A person selling and installing tangible personal property that becomes real property after installation is generally considered a contractor, except that a retailer selling and installing fences, venetian blinds, window shades, awnings, storm windows and doors, floor coverings (as distinguished from floors themselves), cabinets, kitchen equipment, window air conditioning units or other like or comparable items is not classified as a using or consuming contractor with respect to them.
For purposes of the above provision, a retailer is defined in the regulation as "any person who maintains a retail or wholesale place of business, an inventory of the aforementioned items (fences, awnings, storm windows and doors, floor coverings, etc.) and/or materials which enter into or become a component part of the aforementioned items, and who performs installation as part of or incidental to the sale of the aforementioned items."
From the information provided in your letter, it appears that your client does maintain retail places of business from which sales of fencing materials, maintains inventories of fencing materials, and makes installation of fencing materials. Based upon the foregoing, I feel that ***** must be deemed a retailer for purposes of the sales and use tax. As this ruling supersedes the tentative ruling provided to your client on December 23, 1983, will henceforth need to collect the sales and use tax from persons for whom fences are installed. Of course, sales of fencing to governmental entities and nonprofit institutions of learning are generally exempt from the tax when the purchaser provides your client a valid Certificate of Exemption.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner