Tax Type
Retail Sales and Use Tax
Description
Government transactions; State commission's sale of official documents.
Topic
Taxability of Persons and Transactions
Date Issued
06-10-1998
June 10, 1998
Dear*****:
This is in reply to your letter of April 7, 1998, in which you request a ruling on the application of the retail sales and use tax to sales by the ***** (the ``Commission').
FACTS
The Commission is a nonprofit instrumentality of the Commonwealth. The Commission makes sales of certain documents such as Commission studies, engineering studies, official reports, and aerial photos. You seek guidance on the application of the sales and use tax to the Commission's sales.
RULING
Title 23 of the Virginia Administrative Code (VAC) 10-210-691 addresses the application of the retail sales and use tax to sales by the federal government and state and local governments. State government, its agencies, political subdivisions, and local governments are not entitled to an exemption from the collection of the tax on their sales of tangible personal property unless such property is otherwise exempt.
The regulation provides that sales by the state, its agencies, or political subdivisions of copies of official documents or records are not taxable. In Public Document (P.D.) 94-335 (11/10/94), the department provides the general rule that official documents or records are those sold by a government entity which are not normally available from other sources. The ruling goes on to address the tax application to certain categories of sales by government entities.
Following the general rule and the guidance provided in P.D. 94-335, sales of Commission studies, engineering studies, and official reports by the Commission constitute official documents. Therefore, the Commission is not required to charge the tax on the sale of these items. However, sales of aerial photographs are deemed to be taxable and the tax should be charged on these sales.
I am enclosing copies of the regulation and P.D. 94-335 for your information and I hope this has responded to your inquiry. Should you have additional questions, please do not hesitate to contact ***** at *****.
Dear*****:
This is in reply to your letter of April 7, 1998, in which you request a ruling on the application of the retail sales and use tax to sales by the ***** (the ``Commission').
FACTS
The Commission is a nonprofit instrumentality of the Commonwealth. The Commission makes sales of certain documents such as Commission studies, engineering studies, official reports, and aerial photos. You seek guidance on the application of the sales and use tax to the Commission's sales.
RULING
Title 23 of the Virginia Administrative Code (VAC) 10-210-691 addresses the application of the retail sales and use tax to sales by the federal government and state and local governments. State government, its agencies, political subdivisions, and local governments are not entitled to an exemption from the collection of the tax on their sales of tangible personal property unless such property is otherwise exempt.
The regulation provides that sales by the state, its agencies, or political subdivisions of copies of official documents or records are not taxable. In Public Document (P.D.) 94-335 (11/10/94), the department provides the general rule that official documents or records are those sold by a government entity which are not normally available from other sources. The ruling goes on to address the tax application to certain categories of sales by government entities.
Following the general rule and the guidance provided in P.D. 94-335, sales of Commission studies, engineering studies, and official reports by the Commission constitute official documents. Therefore, the Commission is not required to charge the tax on the sale of these items. However, sales of aerial photographs are deemed to be taxable and the tax should be charged on these sales.
I am enclosing copies of the regulation and P.D. 94-335 for your information and I hope this has responded to your inquiry. Should you have additional questions, please do not hesitate to contact ***** at *****.
Rulings of the Tax Commissioner