Tax Type
Retail Sales and Use Tax
Description
Printed Materials for Distribution
Topic
Collection of Delinquent Tax
Date Issued
08-13-1996
August 13, 1996
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear**********
This is in reply to your letter of November 27, 1995, in which you seek correction of a retail sales and use tax assessment for*********(the "Taxpayer") for the period August 1992 through July 1995.
FACTS
The Taxpayer was audited by the department and assessed tax on various items. You protest the assessment of use tax on the purchase of printed materials for distribution to the Taxpayer's customers. The materials contain information for customers about the Taxpayer's products and services and provide helpful hints and suggestions for everyday life. The auditor assessed use tax on copies of the newsletters mailed to the Taxpayer's Virginia customers.
DETERMINATION
Code of Virginia § 58.1-609.6(4) provides an exemption from the retail sales and use tax for "[c]atalogs, letters, brochures, reports, and similar printed materials...when stored for twelve months or less in the Commonwealth and distributed for use without the Commonwealth." In this case, the Taxpayer was assessed tax on printed materials purchased for distribution within the Commonwealth.
The auditor allocated a 55% ratio to the amount of printed materials for distribution outside the Commonwealth and 45% for those materials retained for use in the Commonwealth (distributed to Virginia customers). Based on the information provided, the percentages used by the auditor were reasonable; the Taxpayer has not provided documentation substantiating percentages which more accurately reflect the distribution of materials or indicating the percentages used by the auditor were erroneous.
Based on the information provided, there is no basis to revise the audit. I understand the assessment has been paid in full. Accordingly, your request for refund is denied.
If you have any questions regarding this matter, you may contact ***********
at ********** .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10653F
Rulings of the Tax Commissioner