Tax Type
Retail Sales and Use Tax
Description
Machinery leased with an operator
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
04-28-1989
April 28, 1989
Re: Request for Ruling: Retail Sales and Use Tax
Dear***************
This will reply to your letter of January 27, 1989, in which you requested a ruling on the application of the sales and use tax to your business.
FACTS
******("The Taxpayer"), is an out-of-state lessor of boom cranes ("the cranes") both with and without operators. The Taxpayer specifically asks about the application of the tax when the crane is leased with an operator.
RULING
§630-10-57 of the Virginia Retail Sales and Use Tax Regulations, copy enclosed, states that the tax generally applies to leases of tangible personal property without operators. Conversely, a lease with an operator would be considered a nontaxable service transaction under §58.1-608(2) of the Code of Virginia.
If you have any further questions, please contact us.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner