Tax Type
Retail Sales and Use Tax
Description
Campground site rented for more than 90 continuous days; Refund of tax
Topic
Exemptions
Returns/Payments/Records
Date Issued
09-19-1989
September 19, 1989
Re: Request for Ruling/Sales and Use Tax
Dear*************
This will reply to your letter dated February 6, 1989 in which you request a ruling on the refund of sales tax paid on a three-year rental of a campground site.
FACTS
*********(Taxpayer) has received a refund claim for sales tax paid for a three-year period on a site rental. Sales tax on its monthly site rentals has been collected and all applicable taxes have been submitted to the Department of Taxation. Taxpayer requests a ruling on whether it is required to refund sales tax paid on the three-year site rental.
RULING
Virginia Retail Sales and Use Tax Regulation 630-10-48 provides that the sales and use tax applies to the sale or charge for any room or rooms, lodgings or accommodations furnished to transients by any hotel, motel, inn, tourist camp, tourist cabin, camping grounds, club, or other similar place. However, the tax does not apply to rooms, lodgings or accommodations supplied to a guest for a period of 90 continuous days or more. After a transient has occupied a room or received other accommodations for 90 continuous days or more, the dealer furnishing the room or other accommodations may refund any sales tax actually collected from the person.
Legislation enacted by the 1989 General Assembly excluded from the term "transient" referenced above the purchaser of camping memberships or similar contracts or interests that permit the use of, or constitute an interest in, real estate, effectively excluding these purchases from the tax. The law change was effective on July 1, 1989, with retroactive effect to January 1, 1985. However, regardless of whether the rental site occupant was the purchaser of a camping membership or a regular transient, refunds of tax previously paid are subject to the three-year statute of limitations prescribed in Virginia Code §58.1-1823. Refund requests must be filed with the Department of Taxation within three years from the date the tax became due.
Either a dealer or a consumer may apply for a refund of sales tax paid. VR 630-1-1820 (copy enclosed) explains the procedures for such. Additionally, VR 630-10-89 (copy enclosed) further explains the refunding of sales and use taxes to dealers.
Thus, the Taxpayer may request a refund of the sales tax paid by its customer after the tax is refunded to the customer. Please forward the necessary information to the department's Office Services Division, Taxpayer Assistance Section, P. O. Box 6-L, Richmond, Virginia 23282.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner