Tax Type
Retail Sales and Use Tax
Description
Common carriers; Conveyor system, Dock equipment
Topic
Taxability of Persons and Transactions
Date Issued
08-16-1996
August 16, 1996
Re: § 58.1-1821 Reconsideration: Retail Sales and Use Tax
Dear *****************
This will reply to your letter of July 26, 1996 in which request a reconsideration of the determination issued to *****(the "Taxpayer") on July 9, 1996. More specifically, the Taxpayer feels the "walkways", which allow access to the Taxpayer's conveyor system, are directly used in the rendition of the Taxpayer's public service function and are exempt from the tax.
The Taxpayer offers several key functions served by the walkways to support its contention that the walkways should enjoy the exemption. These functions are as follows:
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- Load doors from which the trailers are unloaded must have an 18 inch elevation to load packages onto the conveyors. The walkways provide this elevation for the conveyor system.
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- The walkways are used to elevate Sort and SWAK stations which move the packages through the facility.
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- OSHA regulations mandate that these walkways be used for safety purposes.
In addition to the above, I have been advised by a member of my staff that the walkways are purchased at the same time and as an integral part of the Taxpayer's exempt conveyor system. The walkways are also installed at the same time the Taxpayer's conveyor system is installed.
Based on all of the above, I find that the walkways are an integral part of the conveyor system and enjoy the same exemption afforded to the conveyor system as being directly used in the rendition of the Taxpayer's common carrier service. The audit will be adjusted and the appropriate refund will be issued to the Taxpayer.
If you should have any further questions, please contact ****** Office of Tax Policy, at ******** .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/11485K
Rulings of the Tax Commissioner