Tax Type
Retail Sales and Use Tax
Description
Farming; Horses
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
02-01-1986
February 1986
Re: Ruling Request/Sales and Use Tax
Dear
This will reply to your letter of December 19, 1985 requesting further clarification of my previous ruling in this case, dated August 14, 1985.
The summary submitted with your December 19, 1985 letter, is approved with the following clarifications:
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- Regarding the exemption granted in §58.1-608(20) for "[d]elivery of tangible personal property outside the Commonwealth for use or consumption outside of the Commonwealth," in order for the sale of a horse to qualify for this exemption, the purchaser must take delivery of the horse outside the state in either the seller's vehicle, by independent trucker or contract carrier hired by the seller; or by common carrier. §630-10-51, Virginia Retail Sales and Use Tax Regulations.
Regarding the exemption granted under §58.1-608(5) of the Code, for "[l]ivestock . . . farm and agricultural products, when produced by the farmer and used or consumed by him and the members of his family," all feed and other supplies used in raising and maintaining such livestock . . . etc., (including horses), would remain subject to the tax.
Regarding the exemption granted under §58.1-608(3) of the Code, for "[c]ommercial feeds, seeds, etc.... breeding fees .... and agricultural supplies provided the same are sold to and purchased by farmers for use in agricultural production . . . for market," only feed . . . etc., purchased for exclusive use in agricultural production for market, qualifies for the exemption. Therefore, for sales of feed for consumption by horses to qualify for the exemption, such horses must be used exclusively in agricultural production for market.
- Regarding the exemption granted in §58.1-608(20) for "[d]elivery of tangible personal property outside the Commonwealth for use or consumption outside of the Commonwealth," in order for the sale of a horse to qualify for this exemption, the purchaser must take delivery of the horse outside the state in either the seller's vehicle, by independent trucker or contract carrier hired by the seller; or by common carrier. §630-10-51, Virginia Retail Sales and Use Tax Regulations.
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- Regarding the general rate of sales and use tax, the correct amount should be 4% which is comprised of a 3% state tax and a 1% local tax applicable throughout Virginia. Virginia Retail Sales and Use Tax Regulations.
- Regarding the general rate of sales and use tax, the correct amount should be 4% which is comprised of a 3% state tax and a 1% local tax applicable throughout Virginia. Virginia Retail Sales and Use Tax Regulations.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner