Tax Type
Retail Sales and Use Tax
Description
Display booth; First use
Topic
Taxability of Persons and Transactions
Date Issued
08-21-1989
August 21, 1989
Re: Ruling Request/Sales and Use Tax
Dear****************
This is in reply to your letter of June 30, 1989 requesting a ruling on the sales and use tax application to a display booth purchased from a Pennsylvania firm.
FACTS
*************** hereinafter taxpayer, is a registered Virginia dealer with two locations within Virginia. Taxpayer has purchased a display booth from a Pennsylvania firm which did not collect the Virginia use tax or the Pennsylvania sales tax. First use of the display booth will be made in Virginia when it is delivered to Virginia by the Pennsylvania firm. The booth will then be taken back to Pennsylvania where it will be stored until it is delivered to Maryland for use in a Maryland show. The booth will then be stored at taxpayer's Maryland warehouse. All the moving, setup and tear-down of the booth is done by the Pennsylvania firm up until the time it is stored in the Maryland warehouse. Taxpayer is seeking a ruling as to the Virginia sales or use tax application to this situation.
RULING
§58.1-604 of the Code of Virginia addresses the imposition of the use tax and states, "there is hereby levied and imposed, in addition to all other taxes and fees now imposed by law, a tax upon the use or consumption of tangible personal property in this State, or the storage of such property outside the State for use or consumption in this State...". Keeping the above in mind, §630-10-51 of the Virginia Retail Sales and Use Tax Regulations addresses interstate commerce and subsection B of this regulation states the following:
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"Transactions taxable in Virginia. The tax applies to the first use in Virginia of tangible personal property purchased elsewhere in a transaction which would have been taxed had the transaction occurred in Virginia, regardless of the fact that such property may have been, or may be used in interstate commerce,...Any tax due because of first use in Virginia may be subject to credit for like taxes paid elsewhere."
If you should have any further questions, please feel free to contact this department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner