Tax Type
Retail Sales and Use Tax
Description
Liquidation sale
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
10-19-1987
October 19, 1987
Re: Ruling Request
Retail Sales and Use Tax
Dear ****************
This is in reply to your letter of July 14, 1987 in which you request a ruling regarding the applicability of the "occasional sale" exemption, as defined under Virginia Code §58.1-602.12, to the liquidation sale of the assets of ************** (Joint Venture).
We have recently issued two relevant determination letters on the subject of the "occasional sale" exemption (copies attached). These rulings explained the department's position on the requirements that must be met in order for a sale to be exempt from the tax as an "occasional sale." The determinations made in these cases support Virginia Regulation 630-10-75. which denies the occasional sale exemption in cases in which a person makes four or more sales per year even though the property sold is not used in the course of a registerable activity.
Therefore, based upon the definition of "occasional sale" under Virginia Code §58.1-602.12 and under Virginia Regulation 630-10-75 and the department's rulings in the attached letters, the liquidation sale of the assets of Joint Venture does not qualify for the exemption from the tax.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner