Tax Type
Retail Sales and Use Tax
Description
Magazine advertising homes for sale
Topic
Property Subject to Tax
Date Issued
08-31-1993
August 31, 1993
Re: §58.1-1821 Application: Retail Sales & Use Tax
Dear***************
This will respond to your attorney's**********letter of August 20, 1993 in which he contested the department's assessment to your company, the "Taxpayer," for the period February 1990 through December 1992.
FACTS
The Taxpayer publishes on a monthly basis a magazine advertising homes for sale. You contest the tax assessed with respect to the magazines as you maintain the magazines qualify as exempt publications under subdivision 3 of Va. Code §58.1-609.6.
DETERMINATION
The department has consistently held that magazines advertising homes for sale do not qualify as exempt publications under subdivision 3 of Va. Code §58.1-609.6 [formerly §58.1-608(6)(3)] since they primarily are a compilation of advertisements. See P.D. 91-29 (3/11/91), copy enclosed.
Furthermore, on May 28, 1993) the Circuit Court of the City of Newport News upheld the department's position with respect to such magazines in Lawrence Carr, Jr. and Debra A. Carr, individually and trading as Homes and Land Magazine v. W.H. Forst.
Accordingly, the assessment issued to the Taxpayer is correct and is now due and payable. A revised Notice of Assessment with accrued interest will be mailed to the Taxpayer as soon as practicable and should be paid within 30 days to avoid the accrual of additional interest and collection activities.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/7159H
Rulings of the Tax Commissioner