Tax Type
Retail Sales and Use Tax
Description
Photographs used by salesmen
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
12-13-1985
- December 19, 1985
RE: §58.1-1821 Application/Sales and Use Tax
Dear ****
This will reply to your letter of October 28, 1985, in which you submit an application for correction of sales and use tax assessed to ***** as the result of a recent audit.
FACTS
A recent audit of ***** produced an assessment for its failure to remit the sales and use tax on its purchase of photographs used in the advertising of its products. Each of the photographs purchased pictures one of the taxpayer's product lines and includes the identification number, size, height, and description of each item of furniture pictured. Reproduced in bulk from an original, the photographs are furnished by the taxpayer to its salesmen and to dealers who carry the taxpayer's products.
The taxpayer contests the assessment, asserting that the photographs in question are exempt from the tax as "printed advertising materials" under Section 630-10-18.1 of the Virginia Retail Sales and Use Tax Regulations.
DETERMINATION
Section 58.1-608.30 of the Code of Virginia exempts the following items from the sales and use tax:-
- Catalogs and other printed materials used in the advertising of tangible personal property for sale, the envelopes, containers and labels used for packaging and mailing same, and paper furnished to a printer for fabrication into catalogs and other printed materials used in advertising tangible personal property for sale, when stored for twelve months or less in the Commonwealth and distributed for use without the Commonwealth.
As stated in Section 630-10-18.1 of the Virginia Retail Sales and Use Tax Regulations, the above exemption is not met unless "materials meet all three of the following conditions:
1. The materials will be stored in Virginia for less than 12 months;
2. The materials will be distributed for use outside Virginia; (and)
3. The materials will be used for advertising the sale of tangible personal property.
The photographs in question are used by the taxpayer's salesmen in much the same manner as a salesman's catalog in advertising tangible personal property for sale and are printed materials similar in nature to catalogs and brochures, which are deemed to be nontaxable under Regulation 630-10-18.1. Therefore, the photographs are not taxable to the extent that they are used outside of Virginia after storage here for twelve months or less. The assessment issued to the taxpayer will be revised accordingly.
Sincerely,
W. H. Forst
Tax Commissioner -
Rulings of the Tax Commissioner