Rulings of the Tax Commissioner

P.D. 98-196
VIRGINIA:
In the Circuit Court of the City of Richmond, John Marshall Courts Building
BOEHRINGER INGELHEIM PHARMACEUTICALS, INC. v. DEPARTMENT OF TAXATION,
COMMONWEALTH OF VIRGINIA LA-825-1
ORDER
The parties appeared, by counsel, for hearing on Petitioner's Application for Correction of Erroneous or Improper Tax Assessments.
After consideration of the evidence and arguments and for the reasons stated in the Court's letter opinion to counsel, the Court finds that Department of Taxation's determinations that Petitioner's distribution of prescription drug samples was subject to use taxation is correct but that its calculation of the amount of tax due is incorrect in that the calculation is not based on Petitioner's ``cost price' of the samples.
It is, therefore, ORDERED that the judgment is entered in favor of Defendant, Department of Taxation, and against Petitioner, Boehringer Ingelheim Pharmaceuticals, Inc., on the issue of the Petitioner's claim of exemption from taxation of the distributions of drug samples.
It is FURTHER ORDERED that the Department of Taxation shall recalculate the applicable tax and determine the Petitioner's ***** ``cost price' as defined in Va. Code Ann Sec. 58.1-602 and shall refund any excess taxes collected, plus interest from the time of payment by the Petitioner until refunded.
A copy of this order was this day mailed to counsel of record.
ENTER 12/20/96
Judge

Rulings of the Tax Commissioner