Tax Type
Property Tax
Description
Situs in North Carolina
Topic
Allocation and Apportionment
Taxpayers' Remedies
Date Issued
06-03-1982
June 3, 1982
Re: § 58-1118 Application for 1977, 1978, 1979 and 1980 Capital Not Otherwise Taxed
Dear **************
This ruling is issued in response to your application under § 581118, Code of Virginia, additional information submitted, and a taxpayer hearing held May 20, 1982.
FACTS
Taxpayer is a Virginia corporation conducting business in Virginia and North Carolina as a paving and excavating contractor. The corporation's general office is in Virginia which handles all paving operations. Taxpayer maintains a branch office in North Carolina which handles a excavating operations.
The North Carolina office is a permanent office which maintains records on payables, payroll, and work in progress. Checks for the North Carolina operation are drawn in the branch office. All accounts receivable are billed, collected, and recorded in North Carolina for the branch office's operations.
Three audit adjustments protested by the taxpayer concern the situs of the following items: (1) retainage receivable, (2) account receivable for North Carolina job, and (3) notes payable and trade accounts payable relating to the North Carolina job.
DETERMINATION
The operations and general overall control of the taxpayer's permanent North Carolina branch office are sufficient for the North Carolina job's retainage receivable, account receivable and notes and accounts payable to acquire situs in North Carolina. The amounts included in the capital tax audit relating to these items will be removed. You will receive revised assessments reflecting the changes set out in this letter in the near future.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner