Tax Type
Retail Sales and Use Tax
Description
Innovative high technology industries and research
Topic
Taxability of Persons and Transactions
Date Issued
10-17-1986
October 17, 1986
Re: Request for Ruling/Sales and Use Tax
Dear *****************
This will reply to your letter of August 26, 1986, in which you wish to determine the effective date of Emergency VR 630-10-49.2: Sales and Use Tax: Innovative High Technology Industries and Research.
The above referenced regulation sets forth in a general manner how the sales and use tax applies to high technology or technologically innovative industries and research activities. As such, the regulation interprets the industrial manufacturing and processing and basic research and research and development exemptions found in §58.1-608 of the Code of Virginia, as well as other statutes contained in the Virginia Retail Sales and Use Tax Act. Further, the regulation references existing departmental policy as reflected in VR 630-10-63 (Manufacturing and processing) and VR 630-10-92 (Research), as well as other sections of the Virginia Retail Sales and Use Tax Regulations.
Inasmuch as Emergency VR 630-10-49.2 is a reflection of existing law and departmental policy, I must conclude that the regulation is retroactive in its effect. Thus, persons engaged in activities qualifying for exemption under the regulation will be entitled to refunds of sales and use tax paid on tangible personal property used directly in industrial manufacturing or processing activities or that used directly and exclusively in basic research or research and development activities in the experimental or laboratory sense. Of course, any refund request must be filed within three years from the due date of the tax paid, pursuant to the period of limitations set forth in §58.1-1823 of the Code of Virginia and VR 630-1-1823.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner