Tax Type
Retail Sales and Use Tax
Description
Transitional provisions; Equipment delivered after January 1, 1987
Topic
Rate of Tax
Taxability of Persons and Transactions
Date Issued
03-31-1987
March 31, 1987
Dear ********************
This will reply to your letter of February 23, 1987, in which you express your concern over having to pay an additional 1/2 % sales tax on equipment delivered to you after January 1, 1987.
As you know, the 1986 Special Session of the General Assembly enacted an increase in the sales and use tax that took effect on January 1, 1987. The tax revenue that is produced by this rate increase will be used to fund needed improvements to Virginia's highway and transportation systems.
Although the equipment in question was ordered before the rate increase took effect on January 1, 1987, it was not delivered to you until after January 1, 1987. Thus, the new tax rate of 4 1/2 % applies to the equipment.
While I understand your displeasure, the additional 1/2 % tax was properly billed to you by your supplier and must be paid to him as required by §58.1-625 of the Code of Virginia.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner