Tax Type
Retail Sales and Use Tax
Description
Casket for shipment out-of-state
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
06-23-1988
June 23, 1988
Re: Ruling Request
Sales and Use Tax
Dear***************
This is in reply to your letter of December 9, 1987 in which you request a ruling regarding the applicability of the Virginia Retail Sales and Use Tax to the sale of a casket under the following circumstances.
FACTS
*************(Funeral Home) is located in Virginia and is a registered sales tax dealer. A customer purchased a casket and directed that the funeral home embalm his deceased mother, place her body in the casket and ship the casketed body to an out-of-state funeral director for funeral services and burial. There was to be no viewing, visitation or funeral services in Virginia.
You request a ruling regarding the applicability of the sales tax to this sale of a casket for shipment out-of-state.
RULING
Virginia Code §58.1-608.20 provides an exemption from the tax for sales of tangible personal property in interstate or foreign commerce. Under this section, a sale is exempt from the tax if there is "[d]elivery of tangible personal property outside the Commonwealth for use or consumption outside of the Commonwealth."
Therefore, under this section, a sale of a casket (and any other separately stated tangible personal property) is exempt when no part of the services of the funeral director takes place in Virginia other than embalming the body, placing the same in a casket and delivering the same from Virginia to a point outside of Virginia. Furthermore, Virginia Regulation 630-10-51 requires that the delivery to the purchaser outside Virginia be by either the seller's vehicle, contract carrier hired by the seller, or by common carrier. If the remains are made available for the public or friends to pay their respects in Virginia, then the tax applies to the sale of the casket and any other separately stated tangible personal property sold.
Based upon the facts presented in your letter, the sale of the casket would be exempt from the tax.
If you have any further questions, please do not hesitate to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner