Tax Type
Retail Sales and Use Tax
Description
Reference materials
Topic
Property Subject to Tax
Date Issued
01-13-1995
PD 95-7
Dear
This will reply to your letter of June 9, 1994, in which you apply for correction of a sales and use tax assessment for the period February 1991 through January 1994 on behalf of your client.
******** (the"Taxpayer") publishes the****************(the"Guide"). The Guide is sold on a subscription basis and at retail to the general public. The Taxpayer contends that the Guide qualifies as an exempt publication under Code of Virginia §58.1-609.6(3). The Taxpayer also requests waiver of use tax penalty assessed in the audit.
The department's policy with respect to the Guide is well established. I have enclosed copies of P.D. 94-12 (1/11/94) and P.D. 83-76 (4/21183); both of these documents specifically state that subscription sales of***********Guides are taxable. Please note that the department's tax treatment of this publication is longstanding as indicated by the 1983 ruling and this position was recently upheld in the 1994 ruling. Therefore, no basis exists to remove untaxed sales of the Guides from the Taxpayer's audit.
The use tax compliance ratio for the Taxpayer during the audit period was 83.19%. During the audit period, Virginia Regulation (VR) 630-10-80 was revised and the required use tax compliance ratio for third and subsequent audits was increased from 75% to 85%, effective July 1, 1993. All but seven months of the audit period were prior to the effective date and subject to the 75% ratio, which the Taxpayer exceeded. Based on this information and a review of the audit workpapers, the use tax penalty portion of the assessment will be abated.
An updated notice of assessment will be issued to the Taxpayer which reflects the abatement of use tax penalty in the amount of********Additional interest will not be assessed if full payment of the remaining balance of *************is received within thirty days. After thirty days, interest will accrue on any unpaid balance. You may contact **************if you have any questions concerning this matter.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/8724S
COMMONWEALTH of VIRGINIA
Department of Taxation
January 13, 1995
Re: 58.1-1821 Application: Retail Sales and Use Tax
Department of Taxation
January 13, 1995
Re: 58.1-1821 Application: Retail Sales and Use Tax
Dear
This will reply to your letter of June 9, 1994, in which you apply for correction of a sales and use tax assessment for the period February 1991 through January 1994 on behalf of your client.
******** (the"Taxpayer") publishes the****************(the"Guide"). The Guide is sold on a subscription basis and at retail to the general public. The Taxpayer contends that the Guide qualifies as an exempt publication under Code of Virginia §58.1-609.6(3). The Taxpayer also requests waiver of use tax penalty assessed in the audit.
The department's policy with respect to the Guide is well established. I have enclosed copies of P.D. 94-12 (1/11/94) and P.D. 83-76 (4/21183); both of these documents specifically state that subscription sales of***********Guides are taxable. Please note that the department's tax treatment of this publication is longstanding as indicated by the 1983 ruling and this position was recently upheld in the 1994 ruling. Therefore, no basis exists to remove untaxed sales of the Guides from the Taxpayer's audit.
The use tax compliance ratio for the Taxpayer during the audit period was 83.19%. During the audit period, Virginia Regulation (VR) 630-10-80 was revised and the required use tax compliance ratio for third and subsequent audits was increased from 75% to 85%, effective July 1, 1993. All but seven months of the audit period were prior to the effective date and subject to the 75% ratio, which the Taxpayer exceeded. Based on this information and a review of the audit workpapers, the use tax penalty portion of the assessment will be abated.
An updated notice of assessment will be issued to the Taxpayer which reflects the abatement of use tax penalty in the amount of********Additional interest will not be assessed if full payment of the remaining balance of *************is received within thirty days. After thirty days, interest will accrue on any unpaid balance. You may contact **************if you have any questions concerning this matter.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/8724S
Rulings of the Tax Commissioner