Tax Type
Retail Sales and Use Tax
Description
Meals and lodging purchased by state employees or state agencies
Topic
Taxability of Persons and Transactions
Date Issued
05-19-1988
May 19, 1988
Dear*****************
This will reply to your letter of May 5, 1988, in which you wish to determine the application of the sales; and use talc to purchases of meals and lodging by your agency.
The application of the tax in this instance is governed. by a 1969 opinion Or the Attorney General, a copy of which is enclosed. In this opinion, the Attorney General concluded that state government agencies do not enjoy an exemption from the sales tax when purchasing meals or lodging.
In applying this opinion to the situations described in your letter, the tax will in fact apply when your agency purchases meals and lodging for (1) agency employees or (2) politically appointed commission members, who are not employees or the agency and who are not compensated for their services. The tax will also apply regardless. of whether. purchases are paid for by employees or commission members or directly by the agency.
I would like to thank you for your suggestion regarding the wording of Virginia Regulation 630-10-45.D.1. When this regulation is revised in the future, we will clarify that the tax applies equally to purchases Or meals and lodgings by state employees. and state agencies.
I trust that this will clarify the conflicting information that you have received; however, please do not hesitate to contact the department ii any questions arise in the future.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner