Tax Type
Retail Sales and Use Tax
Description
Sale of ID passes
Topic
Taxability of Persons and Transactions
Date Issued
02-22-1993
February 22, 1993
Re: Request for Ruling: Retail Sales and Use Tax
Dear ****
This will reply to your letter regarding the application of the tax to the sale of ID passes which allow elementary school students to purchase tickets to high school sporting events at a discounted price. I regret the delay in issuing you a response.
I have enclosed a copy of a ruling issued by the department, Public Document 89-170 (5/22/89), which deals with a similar situation. I have also enclosed a copy of Virginia Regulation (VR) 630-10-97.1 which addresses nontaxable service transactions.
As set forth in the ruling letter and the regulation *** are deemed to be providing a nontaxable service to which the tax does not apply. In the instant case, the ID passes merely represent the right to attend a sporting event at a reduced price.
However, you are subject to the tax on any tangible personal property purchased, used or consumed in providing that service.
I trust this responds to Your question. but let the department know if you need additional information.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/5551I
Rulings of the Tax Commissioner