Tax Type
Retail Sales and Use Tax
Description
Hunting reserve packages
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
09-21-1989
September 21, 1989
Re: Request for Ruling: Sales and Use Tax
Dear***********
This will reply to your letter of July 31, 1989 and***********letter of October 28, 1988, regarding the application of the sales and use tax to your operations.
As noted in my April 28, 1989 ruling to a similar business, a hunting reserve provides a nontaxable service when it permits individuals on its grounds to hunt for a fee.
The same is also true when the reserve sells "hunting packages," which include access to the reserve, meals and/or lodging. Thus, collection of the sales tax is not required on the meals and lodging portions of the package price, whether or not the meals and lodging are furnished on the reserve's premises.
However, as the provider of a nontaxable service, the reserve will be required to pay the sales tax on all purchases or leases of tangible personal property, including supplies and animals used in hunting. The reserve must also pay the tax to restaurants, hotels, motels, or campgrounds which provide meals or lodging in connection with hunting packages.
If a vendor is not registered for collection of the sales tax or fails to collect the tax, the reserve will be required to remit the use tax to the department. I have enclosed Virginia Regulation 630- 10- 109, which describes the use tax, and a consumer's use tax registration form.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner