Tax Type
Retail Sales and Use Tax
Description
Leases and rentals; Golf balls.
Topic
Taxability of Persons and Transactions
Date Issued
11-19-1997
See P.D. 97-169 for correction
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear*************
This will reply to your letter in which you seek correction of the retail sales and use tax audit of ********(the "Taxpayer") for the period of January 1994 through December 1996.
FACTS
The Taxpayer is in the golf course management business, of which four golf courses are located in Virginia. The Taxpayer was audited and assessed sales tax on the rental of driving range golf balls at one of the Virginia golf courses. The Taxpayer is taking exception to the tax being applied to the rental of driving range balls based on 23 Virginia Administrative Code (VAC) 10-210-950 (enclosed; previously VR 630-10-65.1) dealing with the application of the retail sales and use tax to miniature golf courses and driving ranges.
DETERMINATION
In reviewing the facts surrounding this case we must look not only at 23 VAC 10-210-950, but also at 23 VAC 10-210-320 (enclosed; previously VR 630-10-23) dealing with golf and country clubs. While I agree that 23 VAC 10-210-950 expressly provides an exemption for charges to customers for driving range balls, this regulation deals specifically with miniature golf courses and driving ranges not associated with private, semi-private or public golf courses. In addressing driving ranges associated with golf clubs and courses, we must look to 23 VAC 10-210-320, dealing with clubs. It has been the longstanding policy of the department that the rental of golf hand carts, riding carts, and golf balls are subject to the retail sales and use tax when carried on all within the confines and operations of private, semi-private or public golf courses. This policy is further exhibited in Public Document 96-14, enclosed.
Based on the above, l find no basis for revising the audit findings. If you should have any questions, please contact ********Office of Tax Policy, at*********** .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/13101K
November 19, 1997
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear*************
This will reply to your letter in which you seek correction of the retail sales and use tax audit of ********(the "Taxpayer") for the period of January 1994 through December 1996.
FACTS
The Taxpayer is in the golf course management business, of which four golf courses are located in Virginia. The Taxpayer was audited and assessed sales tax on the rental of driving range golf balls at one of the Virginia golf courses. The Taxpayer is taking exception to the tax being applied to the rental of driving range balls based on 23 Virginia Administrative Code (VAC) 10-210-950 (enclosed; previously VR 630-10-65.1) dealing with the application of the retail sales and use tax to miniature golf courses and driving ranges.
DETERMINATION
In reviewing the facts surrounding this case we must look not only at 23 VAC 10-210-950, but also at 23 VAC 10-210-320 (enclosed; previously VR 630-10-23) dealing with golf and country clubs. While I agree that 23 VAC 10-210-950 expressly provides an exemption for charges to customers for driving range balls, this regulation deals specifically with miniature golf courses and driving ranges not associated with private, semi-private or public golf courses. In addressing driving ranges associated with golf clubs and courses, we must look to 23 VAC 10-210-320, dealing with clubs. It has been the longstanding policy of the department that the rental of golf hand carts, riding carts, and golf balls are subject to the retail sales and use tax when carried on all within the confines and operations of private, semi-private or public golf courses. This policy is further exhibited in Public Document 96-14, enclosed.
Based on the above, l find no basis for revising the audit findings. If you should have any questions, please contact ********Office of Tax Policy, at*********** .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/13101K
Related Documents
Rulings of the Tax Commissioner