Tax Type
Retail Sales and Use Tax
Description
Mobile homes; Leveling devices
Topic
Taxability of Persons and Transactions
Date Issued
03-27-1985
March 27, 1985
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of January 7, 1985, in which you submit a request for a ruling on the applicability of the retail sales and use tax to concrete blocks and wooden wedges sold with and used to level mobile homes.
Mobile homes subject to the motor vehicle sales and use tax are exempt from the retail sales and use tax under the provisions of Section 58.1-608.7 of the Code of Virginia. Therefore, if tangible personal property sold with a mobile home is subject to the motor vehicle sales and use tax. it is therefore exempt from the retail sales and use tax.
Virginia Code Section 58.1-2401 defines the term "sale price," upon which the motor vehicle sales and use tax is based, as "the total price paid for a motor vehicle and all attachments thereon and accessories thereto." It is my understanding that the Division of Motor Vehicles interprets this definition as not including items such as concrete blocks and wooden wedges which are not an integral part of mobile homes. Since such non-attached items are not supposed to be included in the base for computing the motor vehicle sales and use tax, they are subject to the retail sales and use tax when purchased by your firm's customers.
You note in your letter that your firm has paid the retail sales and use tax upon its purchase of blocks and wedges. In the future, your firm may purchase such items exclusive of the tax under a Resale Exemption Certificate when they will be resold to customers, but your firm must also collect and remit the sales tax when such items are sold to customers. As to tax previously paid, it is my understanding that you are seeking refunds from your suppliers, thus your firm should not be paving tax on the same items twice.
Please contact us or our ***** District Office if you have any questions.
Sincerely,
W. H. Forst
State Tax Commissioner
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of January 7, 1985, in which you submit a request for a ruling on the applicability of the retail sales and use tax to concrete blocks and wooden wedges sold with and used to level mobile homes.
Mobile homes subject to the motor vehicle sales and use tax are exempt from the retail sales and use tax under the provisions of Section 58.1-608.7 of the Code of Virginia. Therefore, if tangible personal property sold with a mobile home is subject to the motor vehicle sales and use tax. it is therefore exempt from the retail sales and use tax.
Virginia Code Section 58.1-2401 defines the term "sale price," upon which the motor vehicle sales and use tax is based, as "the total price paid for a motor vehicle and all attachments thereon and accessories thereto." It is my understanding that the Division of Motor Vehicles interprets this definition as not including items such as concrete blocks and wooden wedges which are not an integral part of mobile homes. Since such non-attached items are not supposed to be included in the base for computing the motor vehicle sales and use tax, they are subject to the retail sales and use tax when purchased by your firm's customers.
You note in your letter that your firm has paid the retail sales and use tax upon its purchase of blocks and wedges. In the future, your firm may purchase such items exclusive of the tax under a Resale Exemption Certificate when they will be resold to customers, but your firm must also collect and remit the sales tax when such items are sold to customers. As to tax previously paid, it is my understanding that you are seeking refunds from your suppliers, thus your firm should not be paving tax on the same items twice.
Please contact us or our ***** District Office if you have any questions.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner