Tax Type
Tire Tax
Description
State Agencies and Political Subdivisions;Tire Tax
Topic
Exemptions
Date Issued
06-10-1991
VIRGINIA TIRE TAX
The Department has clarified its policy on the application of the Virginia Tire Tax to purchases of tires by state agencies and political subdivisions of the Commonwealth.
Under current policy, state agencies and political subdivisions are exempt from the tire tax on passenger car tires, but not replacement truck tires. Section 2(B) of Virginia Regulation 630-27-642 provides that the exemptions from the retail sales and use tax available under Va. Code § 58.1-608 are also applicable to the tire tax, except that purchases of replacement truck tires are taxable.
However, effective retroactively to January 1, 1990, state agencies and political subdivisions are not required to pay the tire tax on replacement truck tires. Accordingly, all tires purchased by the Commonwealth of Virginia and any political subdivision thereof are exempt from the tax.
Replacement truck tires purchased by other entities which are exempt from the retail sales and use tax under Va. Code § 58.1-608, remain subject to the tire tax.
Questions regarding the Virginia Tire Tax may be directed to the Department's Office Services Division, Taxpayer Assistance Section, P.O. Box 6-L, Richmond, Virginia 23282, (804) 367-8037.
Rulings of the Tax Commissioner