Tax Type
Retail Sales and Use Tax
Description
Nonindustrial processing
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
12-28-1993
December 28, 1993
Re: §58.1-1821 Application: Retail Sales and Use Tax
Dear*************
This will respond to your letter of October 16, 1993, seeking reconsideration of the department's position as stated in my September 14, 1993 (P.D. 93-197) and February 9, 1991 letters with respect to certain aspects of your business.
I have completely reviewed my prior determinations to you and all of the information previously submitted to the department. As a result of this review, I continue to find no basis for concluding that your business qualifies for the industrial processing exemption from the retail sales and use tax. The "processing" that occurs is not industrial in nature as it is completely secondary to the sale of products at retail, much the same as the nonindustrial processing performed by restaurants, photographers, artists, tailors and seamstresses (see Virginia Regulation (VR) 630-10-63 B1).
Furthermore, it is my understanding that while there was some confusion and disagreement over the appropriate tax status of some of the equipment purchased by the Taxpayer, the second audit of the Taxpayer and information subsequently provided by an Audit Supervisor during a meeting with the Taxpayer, clarified the appropriate tax status of such.
Accordingly, my prior determinations to you are correct. Further, this will represent my final determination in this matter.
Sincerely,
W. H. Forst
Tax Commissioner
Related Documents
Rulings of the Tax Commissioner