Tax Type
Aircraft Sales and Use Tax
Description
Voluntary Civil Air Auxiliary
Topic
Exemptions
Property Subject to Tax
Date Issued
06-08-1994
June 8, 1994
Re: Request for Ruling: Aircraft Sales and Use Tax
Dear*************
This will reply to your letter of June 19, 1992, in which you request a ruling as to the aircraft sales and use tax application to aircraft owned by the***************( the Taxpayer).
You are asking the Department of Taxation to reevaluate its position regarding the applicability of the Aircraft Sales and Use Tax (Va. Code Sec. 58.1-1500) to the Taxpayer. Specifically, you contend that the Taxpayer's purchases of aircraft are exempt under Va. Code Sec. 58.1-1505.
Any aircraft sold to or used by the United States or any of the governmental agencies thereof, the Commonwealth of Virginia or any political subdivision thereof, or any airline operating in intrastate, interstate or foreign commerce as a common carrier providing scheduled air service on a continuing basis to one or more Virginia airports shall be exempt from the tax imposed by this chapter.
DETERMINATION
On June 22, 1981, the department determined that the Taxpayer was a "voluntary civil auxiliary" and thus not entitled to the above exemption. However, based on the 1980 and 1984 amendments to federal law, which specifically provide that the Taxpayer "shall be deemed an instrumentality of the United States," the department now agrees that the Taxpayer's purchase of aircraft qualifies for the above exemption from the tax.
If you should have any further questions, please feel free to contact the department.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/6339K
Rulings of the Tax Commissioner