Tax Type
Retail Sales and Use Tax
Description
Government transactions; Public college library computer printouts
Topic
Taxability of Persons and Transactions
Date Issued
10-30-1995
October 30, 1995
Re: Request for Ruling: Retail Sales and Use Tax
Dear********************:
This is in response to your letter of October 2, 1995 in which you seek a ruling on the application of the sales and use tax to certain sales made at the library of **************(the "Taxpayer").
FACTS
The Taxpayer, a Virginia public college, installed CD Rom computers at its library. By using the computers, students can access and print large quantities of educational information. This information is generally used by students in preparing term papers and other research projects, but may also consist of assigned reading assignments.
The library proposes to charge students 10 cents per page to compensate for paper costs associated with this student-accessed printing, and you ask if the library needs to add sales tax to these charges. You also suggest that the educational information accessed and printed by students is analogous to textbooks sold in the college bookstore and therefore exempt from the tax.
RULING
The application of the tax to sales made by the Commonwealth and its political subdivisions is governed by Virginia Regulation (VR) 630-10-45(D). This regulation indicates that, with certain exceptions, sales of tangible personal property by state and local governments are taxable. Also, VR 630-10-65.3 provides that sales of microfilm and microfiche copies of documents are the taxable sales of tangible personal property. The enclosed Public Document 94-335 (11/10/94) addresses this issue and identifies specific sales made by government entities.
While state and local governments must generally charge the tax on sales of tangible personal property, an exception is provided by Code of Virginia § 58.1-609.4(1) which exempts from the tax:
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- [S]chool textbooks sold for use by students attending a college or other institution of learning not conducted for profit ... when such textbooks have been certified by a department or instructor of such institution of learning as required textbooks for students attending courses at such institution.
- [S]chool textbooks sold for use by students attending a college or other institution of learning not conducted for profit ... when such textbooks have been certified by a department or instructor of such institution of learning as required textbooks for students attending courses at such institution.
Enclosed is a questionnaire for legislative consideration of a sales and use tax exemption request and Tax Bulletin 94-13 which explains the procedure and information required. If you are interested in pursuing legislation which would exempt the sales discussed above, the questionnaire should be completed and forwarded to the legislator who will sponsor the bill for exemption. The legislator should sign the questionnaire and submit it to the department as soon as possible but no later than December 1, 1995.
Please contact **********in my Office of Tax Policy at********if you have any questions regarding this matter.
Sincerely,
Danny Payne
Tax Commissioner
OTP/10324I
Rulings of the Tax Commissioner