Tax Type
Aircraft Sales and Use Tax
Description
Virginia statutory requirement for assessment of tax, penalty and interest
Topic
Penalties and Interest
Property Subject to Tax
Date Issued
08-12-1982
August 12, 1982
Re: Virginia Aircraft Sales and Use Tax
Dear ***************
This is in response to your letter of July 21 in which you apply on behalf of ******** for relief from an assessment of Virginia Aircraft Sales and Use Tax.
FACTS
On August 6, 1981, Taxpayer made application for and was issued a Virginia aircraft license for a ************* aircraft, Model No. ******** FAA Registration No. **************.
In accordance with the requirements of § 58-685.29 of the Code of Virginia and based on information submitted by Taxpayer, the Department of Taxation assessed aircraft use tax in the amount of ******* together with penalty of ***** and interest to the date of assessment, January 13, 1982, in the amount of **************.
Prior to assessment, Taxpayer was advised of the Virginia statutory requirement for assessment of tax, penalty and interest and was advised that credit against the Virginia tax would be allowed for any similar tax paid another state by reason of the aircraft being purchased in another state.
DETERMINATION
Virginia Code § 58-685.29 imposes a tax of two percent of the sales price of each aircraft sold in this state or, if aircraft was not sold in this state but is required to be licensed for use in this state, a tax of two percent of the sale price; provided that if the aircraft is first required to be licensed in this State six months or more after its acquisition, the tax shall be two percent of its market value.
In application for relief, Taxpayer contends only that the aircraft in issue was purchased in New Hampshire by ******* a New Jersey corporation. No contention is made that the aircraft is not required to be licensed for use in Virginia and no contention is made that a similar tax was paid in New Hampshire, the state of purchase.
Accordingly, you have presented no basis for relief and I have no alternative but to deny your application for relief. The assessment together with additional interest accrued to date should now be paid.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner