Tax Type
Retail Sales and Use Tax
Description
Coin-operated self-service air and vacuum cleaner services
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
06-02-1987
June 2, 1987
Re: Ruling Request/ Sales and Use Tax
Dear ************************
This will reply to your letter of March 27, 1987 seeking a ruling on the correct application of the sales and use tax to sales by service stations of compressed air through coin operated self-service pumps. In addition, you request a ruling on the correct application of the tax to sales by service stations of vacuum cleaner services which are also provided through coin operated self-service machines.
RULING
§58.1-603 of the Virginia Code imposes the sales tax on the gross sales price of each item or article of tangible personal property sold at retail in this State or on the gross sales of any services taxable in this State. The term "tangible personal property" is defined in §58.1-602(19) of the Code as "personal property which may be seen, weighed, measured, felt, or touched, or is in any other manner perceptible to the senses."
§58.1-608(2) of the Code provides an exemption from the sales and use tax for "[p]rofessional, insurance or personal service transactions which involve sales as inconsequential elements for which no separate charges are made, nor services rendered by repairmen for which a separate charge is made."
Sales by service stations of customer/coin operated vacuum cleaner services are not subject to the tax since such sales do not represent sales of tangible personal property or services taxable under the sales and use tax law. Furthermore, sales by such service stations of compressed air through customer/coin operated machines qualify for exemption from the tax since the tangible personal property being sold is inconsequential in relation to the proper tire inflation services being sought by its customers. Therefore, service stations need not report the tax on their gross receipts from the operation of either of the coin operated machines described above.
It should be noted however, that service stations must pay the tax when purchasing or leasing such machinery and equipment. In addition, this ruling is strictly limited to the facts presented and has no application to any other sales or leases of vacuum cleaners themselves, floor cleaning and polishing equipment or other similar machinery and equipment. In addition, this ruling does not apply to other sales of compressed air or gases such as may be sold in aerosol cans, canisters, tanks, etc.
I hope this has responded to your questions, but let me know if you have any further questions.
Sincerely
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner