Tax Type
General Provisions
Description
Tax Bulletin; Disposal Fees on Waste Tires and Other Environmentally Hazardous Materials
Topic
Basis of Tax
Date Issued
12-01-1994
Virginia Department of Taxation
December 1, 1994
94- 10
Application of the Sales Tax to Disposal Fees on Waste Tires and
Other Environmentally Hazardous Materials
Other Environmentally Hazardous Materials
This bulletin is intended to notify members of Virginia's automobile and tire industries of the Virginia Retail Sales and Use Tax application to disposal fees on waste tires and other environmentally hazardous materials, such as anti-freeze, motor oil, etc.
Current Departmental Policy
Code of Virginia §58.1-602 defines "sales price" to include the total amount for which tangible personal property or services are sold, including any services that are a part of the sale. Under Virginia Regulation 630-10-97.1, any services that are included in or in connection with the sale of tangible personal property are taxable.
Dealers in the business of selling tires, anti-freeze, motor oil, and other like automotive accessories, who charge a disposal fee in connection with the sale of such items, are required to collect the tax on the disposal fee, whether or not the disposal fee is separately stated.
By contrast, dealers who provide disposal services totally independent of the sale or provision of tangible personal property, are deemed to be providing a nontaxable service, and are not required to collect the tax on such transactions.
Prospective Compliance
All tire and automotive dealers will be expected to properly charge the tax to their customers beginning January 1, 1995.
Rulings of the Tax Commissioner