Tax Type
Retail Sales and Use Tax
Description
Motion picture production
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
07-20-1987
July 20, 1987
Re: Ruling Request
Retail Sales and Use Tax
Dear *****************
This is in reply to your letter of June 23, 1987 in which you request a waiver of the Virginia retail sales and use taxes applicable to the purchases that will be made in Virginia during the production of the motion picture entitled
RULING
The Code of Virginia imposes either a retail sales and use tax on all sales of tangible personal property in Virginia or the complementary use tax on the use or consumption of tangible personal property in Virginia. The only exemptions from the tax are the ones specifically provided by statute. The courts have long ruled that taxation is the rule and exemptions are to be strictly construed (Retail Sales and Use Tax Regulation VR 630-10-35.2). Absent a specific statutory exemption, the department is without the power or authority to waive the applicable tax on any purchase.
Based upon the information that you provided in your letter of June 23, 1987 and upon the information that you supplied to Mr. Payne in your telephone conversation with him, I find that the department has no alternative other than to deny your request for a waiver of the applicable retail sales and use taxes.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner