Tax Type
Retail Sales and Use Tax
Description
Durable medical equipment
Topic
Taxability of Persons and Transactions
Date Issued
03-08-1985
March 8, 1985
RE: §58.1-1821 Application/Sales and Use Tax
Dear ****
This will reply to your letter of December 18, 1984 in which you submit an application for correction of sales and use tax assessed to ***** as the result of three recent audits.
A review of the audits in question reveals that ***** only has contested the imposition of the sales and use tax upon sales and leases of oxygen concentrators by the corporation. While I feel that Virginia law during the audit period was clear as to the taxability of such sales and leases, a substantial segment of Virginia's durable medical equipment dealers has operated for the past several years in accordance with an unofficial 1978 letter from the department in which oxygen concentrators were deemed to be nontaxable. Accordingly, I find basis for the removal of oxygen concentrator sales and rentals from the three audits of *****. Of course, tax and interest assessed on non-contested items such as beds, commodes, tables, trapezes, and lifts will remain due and payable except that tax assessed upon such items for the period from July 1 to August 1, 1984 will be abated due to a change in the law on July 1, 1984. Your corporation should receive a revised bill shortly.
If after receipt of this letter a hearing is still desired, please advise and one will be arranged to discuss this case. To assist your corporation, I have enclosed a copy of Section 630-10-65 of the Virginia Retail Sales and Use Tax Regulations. Subsection F of this regulation describes the statutory tax exemption provided for durable medical equipment and devices effective July 1, 1984.
Sincerely,
W. H. Forst
Tax Commissioner
Enclosure
RE: §58.1-1821 Application/Sales and Use Tax
Dear ****
This will reply to your letter of December 18, 1984 in which you submit an application for correction of sales and use tax assessed to ***** as the result of three recent audits.
A review of the audits in question reveals that ***** only has contested the imposition of the sales and use tax upon sales and leases of oxygen concentrators by the corporation. While I feel that Virginia law during the audit period was clear as to the taxability of such sales and leases, a substantial segment of Virginia's durable medical equipment dealers has operated for the past several years in accordance with an unofficial 1978 letter from the department in which oxygen concentrators were deemed to be nontaxable. Accordingly, I find basis for the removal of oxygen concentrator sales and rentals from the three audits of *****. Of course, tax and interest assessed on non-contested items such as beds, commodes, tables, trapezes, and lifts will remain due and payable except that tax assessed upon such items for the period from July 1 to August 1, 1984 will be abated due to a change in the law on July 1, 1984. Your corporation should receive a revised bill shortly.
If after receipt of this letter a hearing is still desired, please advise and one will be arranged to discuss this case. To assist your corporation, I have enclosed a copy of Section 630-10-65 of the Virginia Retail Sales and Use Tax Regulations. Subsection F of this regulation describes the statutory tax exemption provided for durable medical equipment and devices effective July 1, 1984.
Sincerely,
W. H. Forst
Tax Commissioner
Enclosure
Rulings of the Tax Commissioner