Tax Type
Retail Sales and Use Tax
Description
Motor Vehicles;Truck Bodies
Topic
Collection of Delinquent Tax
Date Issued
03-08-1985
March 8, 1985
Dear***
This will reply to your letter of November 6, 1984 in which you submit an application for correction of sales and use tax assessed to * * * as the result of a recent audit.
FACTS
* * * is engaged in the collection and disposal of refuse for commercial customers. A recent audit of * * * produced an assessment for the failure to remit the sales and use tax on its purchase of truck bodies which subsequent to purchase were installed on truck chassis. * * * contests the imposition of tax, asserting that the truck bodies purchased are subject only to the two percent motor vehicle sales and use tax. Such assertion is based upon the definition of "motor vehicle' found in Section 46.1-1(15) of the Code of Virginia.
DETERMINATION
As of the date of this assessment, Section 58-441.6(f) of the Code of Virginia (recodified as Virginia Code Section 58.1-608.7 effective January 1, 1985) provided an exemption from the retail sales and use tax for "[m]otor vehicles, trailers and semitrailers, mobile homes and travel trailers.' The term "motor vehicle' for purposes of the retail sales tax was defined in Virginia Code Section 58-441.3(r) (now Virginia Code Section 58.1-602.10) as a "motor vehicle' as defined in Section 58-685.11(3), upon the sale of which all applicable taxes have been paid under the Virginia Motor Vehicle Sales and Use Tax Act.'
Virginia Code Section 58-685.11(3) (now Virginia Code Section 58.1-2401) defined the term "motor vehicle,' upon which the motor vehicle sales and use tax is based, as:
While the above statutory definition might be read so as to include truck bodies used for waste collection and disposal purposes, it is not material to the question at hand. Virginia Code Section 46.1-1 specifically notes that the statutory definition pertains only to the use of the words "motor vehicle' in Title 46.1. Therefore, the definition has no bearing upon Title 58 under which this assessment was made. The statutory definition of "motor vehicle' that must be used in this case was that found at Virginia Code Section 58-685.11(3).
Under the definition found at Virginia Code Section 58-685.11(3), the truck bodies in question are not "motor vehicles' as they are not vehicles designed for self propulsion. Further, the Division of Motor Vehicles advises that truck bodies installed on previously titled chassis are not subject to the two percent motor vehicle sales and use tax. Truck bodies are taxable under the motor vehicle sales and use tax only when titled as units with truck chassis.
It is my understanding in this case that all of the truck bodies included in the department's audit were installed on chassis already titled with the Division of Motor Vehicles. Accordingly, the retail sales and use tax was properly assessed upon the purchase price of such truck bodies.
Based upon the foregoing. I find no basis for the removal of truck bodies from the department's audit of * * *. However, the total assessment will be revised to delete tax assessed for the period from January 1 to June 30, 1981 as such tax was assessed outside the three year statute of limitations.
Dear***
This will reply to your letter of November 6, 1984 in which you submit an application for correction of sales and use tax assessed to * * * as the result of a recent audit.
FACTS
* * * is engaged in the collection and disposal of refuse for commercial customers. A recent audit of * * * produced an assessment for the failure to remit the sales and use tax on its purchase of truck bodies which subsequent to purchase were installed on truck chassis. * * * contests the imposition of tax, asserting that the truck bodies purchased are subject only to the two percent motor vehicle sales and use tax. Such assertion is based upon the definition of "motor vehicle' found in Section 46.1-1(15) of the Code of Virginia.
DETERMINATION
As of the date of this assessment, Section 58-441.6(f) of the Code of Virginia (recodified as Virginia Code Section 58.1-608.7 effective January 1, 1985) provided an exemption from the retail sales and use tax for "[m]otor vehicles, trailers and semitrailers, mobile homes and travel trailers.' The term "motor vehicle' for purposes of the retail sales tax was defined in Virginia Code Section 58-441.3(r) (now Virginia Code Section 58.1-602.10) as a "motor vehicle' as defined in Section 58-685.11(3), upon the sale of which all applicable taxes have been paid under the Virginia Motor Vehicle Sales and Use Tax Act.'
Virginia Code Section 58-685.11(3) (now Virginia Code Section 58.1-2401) defined the term "motor vehicle,' upon which the motor vehicle sales and use tax is based, as:
- every vehicle which is self-propelled or designed for self-propulsion and every vehicle drawn or designed to be drawn by a motor vehicle, including mobile homes . . . and every device in, upon and by which, any person or property is, or can be, transported or drawn upon a highway, but excepting devices moved by human or animal power, devices used exclusively upon stationary rails or tracks and vehicles other than mobile homes used in this Commonwealth but not required to be licensed by the Commonwealth.
While the above statutory definition might be read so as to include truck bodies used for waste collection and disposal purposes, it is not material to the question at hand. Virginia Code Section 46.1-1 specifically notes that the statutory definition pertains only to the use of the words "motor vehicle' in Title 46.1. Therefore, the definition has no bearing upon Title 58 under which this assessment was made. The statutory definition of "motor vehicle' that must be used in this case was that found at Virginia Code Section 58-685.11(3).
Under the definition found at Virginia Code Section 58-685.11(3), the truck bodies in question are not "motor vehicles' as they are not vehicles designed for self propulsion. Further, the Division of Motor Vehicles advises that truck bodies installed on previously titled chassis are not subject to the two percent motor vehicle sales and use tax. Truck bodies are taxable under the motor vehicle sales and use tax only when titled as units with truck chassis.
It is my understanding in this case that all of the truck bodies included in the department's audit were installed on chassis already titled with the Division of Motor Vehicles. Accordingly, the retail sales and use tax was properly assessed upon the purchase price of such truck bodies.
Based upon the foregoing. I find no basis for the removal of truck bodies from the department's audit of * * *. However, the total assessment will be revised to delete tax assessed for the period from January 1 to June 30, 1981 as such tax was assessed outside the three year statute of limitations.
Rulings of the Tax Commissioner