Tax Type
Retail Sales and Use Tax
Description
Tax paid to wrong state on construction materials delivered to Virginia
Topic
Collection of Delinquent Tax
Taxability of Persons and Transactions
Taxpayers' Remedies
Date Issued
11-09-1984
November 9, 1984
Re: § 58-1118 Application: Sales and Use Tax
Dear *******
This will reply to your letter of August 3, 1984 in which you seek relief of sales and use tax assessed against ***** ("Taxpayer") as the result of a recent audit.
FACTS
Taxpayer, a ***** contractor, underwent a sales and use tax audit for the period May 1, 1982 through December 31, 1983, for which an assessment was issued for purchases of materials used in construction repairs to portions of the ***** Bridge located in Virginia, Washington, D.C., and Maryland. All materials were delivered to Taxpayer at *****, Virginia. Taxpayer would then ship materials to be used in the Maryland or D.C. portions of the bridge via the ***** River to the appropriate location. On the materials used in the Maryland portion, Taxpayer paid Maryland sales tax to the State of Maryland.
Taxpayer does not contest the imposition of Virginia sales tax but asks that interest be waived. Taxpayer is seeking a refund from Maryland for sales tax inadvertently paid.
DETERMINATION
Taxpayer does not contest imposition of Virginia sales and use tax but contends that, because it inadvertently paid sales tax to the wrong jurisdiction, interest is not proper. However, § 58-1160 of the Code of Virginia mandates imposition of interest on all deficiencies of tax. Moreover, there is no agreement between Virginia and Maryland to exchange erroneously paid sales tax.
Based on the foregoing, I find no basis for relief and the amount assessed, with additional accrued interest, is due and payable.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner