April 23, 2015
Re: Taxpayer: *****
Locality: *****
Machinery and Tools Tax
Dear *****:
This final state determination is issued pursuant to your request for reconsideration filed on behalf of the ***** (the "County"). You seek a reconsideration of Public Document (P.D.) 15-7 (1/8/2015), the Department's determination letter addressing the Machinery and Tools (M&T) tax assessments issued to ***** (the "Taxpayer") by the County for the 2009 through 2012 tax years.
The M&T tax is imposed and administered by local officials. Virginia Code § 58.1-3983.1 authorizes the Department to issue determinations on taxpayer appeals of M&T tax assessments. On appeal, the M&T tax assessment is deemed prima facie correct, i.e., the local assessment will stand unless the taxpayer proves that it is incorrect.
The following determination is based on the facts presented to the Department summarized below. The Code of Virginia sections, regulation and public document cited are available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department's web site.
FACTS
The Department determined in P.D. 15-7 that the machinery and tools used in the Taxpayer's cartoning process were part of the shipping process and, therefore, exempt from the M&T tax. The County seeks a redetermination of P.D. 15-7, contending that the cartoning equipment was part of the manufacturing process because it was an integral part of creating different products in accordance with the Taxpayer's consumer's demands.
ANALYSIS
Under Va. Code § 58.1-3983.1 D 4, an appeal to the Department is treated in the same manner as an application made pursuant to Va. Code § 58.1-1821. Title 23 VAC 10-20-165 F provides that a taxpayer who disagrees with the Department's final determination may request a reconsideration of the determination. A locality may also seek a reconsideration under Title 23 VAC 10-20-165 F. In order for the Tax Commissioner to grant a request for reconsideration, the request must be received by the Department not later than 45 days after the date of the determination letter, and the requesting party must meet one of four specific requirements set forth in that section.
DETERMINATION
The Department's determination letter was issued and dated January 8, 2015. A request for reconsideration was required to be filed not later than 45 days after that date, i.e., by February 23, 2015 (February 22 fell on a Sunday). The County's request for reconsideration was not filed until March 10, 2015. As such, the County failed to file its request for reconsideration within the 45-day limitations period. Accordingly, the Department cannot consider the County's request for reconsideration as to whether the cartoning equipment was part of the manufacturing process for the 2009 though 2012 tax years.
If you have any questions regarding this response, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/1-5983538742.B