Tax Type
Aircraft Sales and Use Tax
Description
Noncommercial aircraft dealer; Expired dealer license
Topic
Collection of Tax
Date Issued
06-21-1994
June 21, 1994
Re: §58.1-1821 Application: Aircraft Sales and Use Tax
Dear****************
This is in reply to your letter of March 3, 1993 in which you seek correction of an aircraft sales and use tax assessment issued by the department on December 19, 1991.
FACTS
****************(the Taxpayer), a noncommercial aircraft dealer, purchased an aircraft for resale in June, 1990. On June 30, 1990 the Taxpayer's dealers license expired. The Taxpayer failed to renew its dealers license until November, 1990. The aircraft in question was not licensed and kept in storage until it was sold in April, 1991. Due to the fact the Taxpayer was not licensed as an aircraft dealer for the period of July through October 1990, the department assessed the 2% aircraft tax on the aircraft. The Taxpayer is seeking relief of the tax and interest as the aircraft remained for sale during this period and no taxable use was made of the aircraft.
DETERMINATION
Due to the fact the Taxpayer made no taxable use of the aircraft during the brief period of time their noncommercial dealers license had expired, I find basis for abating the assessment in full.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/6856K
Rulings of the Tax Commissioner