Tax Type
Retail Sales and Use Tax
Description
Local sales and use tax; Sale of surplus state property
Topic
Collection of Tax
Local Power to Tax
Date Issued
06-29-1988
June 29, 1988
Re: Request for Ruling/Sales and Use Tax
Local Sales Tax
Dear***************
This will reply to your letter of May 10, 1988 in which you request a ruling on the applicability of the local sales and use tax to sales by the surplus property program.
The 1 % local tax is administered and collected by the department in the same manner as the state sales and use tax and is subject to all of the provisions governing the state tax. Therefore, the only exemptions applicable to the local sales and use tax are those which apply to the state sales and use tax.
There is currently no statute that would exempt sales made on state property from the 1% local sales and use tax. The only exception to this rule is an exclusion from the local sales and use tax for sales made on land not deemed part of a county or city (i.e. the State Capitol). Therefore, the 3.5% state tax and the 1% local tax are applicable to sales made by the surplus property program.
If you have any other questions regarding this issue, please do not hesitate to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner