Tax Type
Retail Sales and Use Tax
Description
Concrete mixer truck delivery charges
Topic
Taxability of Persons and Transactions
Date Issued
07-03-1990
July 3, 1990
Re: Ruling Request/Sales and Use Tax
Dear**************
This will reply to your letter of April 10, 1990 in which you request a ruling on the applicability of the Virginia sales and use tax to delivery charges of ready-mix concrete purchased by*******("The Taxpayer").
FACTS
The Taxpayer has a contract with a concrete supply company to purchase ready-mix concrete for a construction project at the********* Hospital in******** Virginia. The Taxpayer wishes to know if the delivery charges for the ready-mix concrete will be exempt from Virginia sales and use tax.
RULING
VR 630-10-24.2 (copy enclosed) states that the "[t]ax applies to retail sales of concrete produced in concrete mixer trucks. The amount on which the tax must be computed includes the charge for the concrete as well as any other service charges connected with such sale." Service charges include, but are not limited to, transportation charges, regardless of whether such charges are separately stated. It is the department's position that the manufacture of concrete is in process during the period of transport. Therefore, no portion of the delivery charges can be excluded as separately stated transportation since no ready-mix concrete has been manufactured until the vehicle reaches its destination.
Based on the foregoing, delivery charges from your ready-mix concrete supplier are not exempt from Virginia sales and use taxation, even if listed separately.
Sincerely,
W.H. Forst
Tax Commissioner
Rulings of the Tax Commissioner