Tax Type
Tire Tax
Description
Tire tax; Collection of the tax by retailer
Topic
Collection of Tax
Date Issued
03-19-1990
March 19, 1990
Re: Request for Ruling/Virginia Tire Tax
Dear ****
This will respond to your letter dated December 13, 1989 in which you request a ruling on the applicability of the Virginia Tire Tax to your business.
FACTS
The Taxpayer, the owner of a gasoline service station, anticipates problems in accounting for his sales of tires which he feels could lead to an audit problem. He, therefore, specifically asks if he may pay the tire tax directly to his supplier and remit the tax on his inventory on hand January 1, 1990 to the department.
RULING
Virginia Code §58.1-641 provides that the tire tax is "imposed upon every retailer of tires in the Commonwealth." "Retailer of tires" is defined in Virginia Code §58.1-640 as "any person engaged in the business of making retail sales of tires...." (Emphasis added)
Virginia Tire Tax Regulation 630-27-640 clarifies that only retailers who sell new tires are subject to the tire tax. Persons engaged in the business of selling only retreads or remanufactured tires are not subject to the tire tax.
All retailers of tires are required pursuant to Virginia Regulation 630-27-642 to register for the tax with the department and to file a tire tax return on a quarterly basis even if no tax is due. Thus, despite the problems the Taxpayer anticipates in having to account for the tires he sell, he is required to register with the department and file a tire tax return as prescribed in the Regulation.
Accordingly, I have forwarded the tire tax registration form which was attached to your letter to the department's Registration Unit. Tire tax returns, worksheets, and a copy of the final Tire Tax Regulations will be mailed to you prior to the close of the first quarter.
However, for your review in the meantime, I have enclosed a copy of the final regulations which were adopted by the department last month. The regulations became effective on February 14, 1990, yet have retroactive effect to January 1, 1990.
If you have any further questions about the tire tax, you may contact the department's Taxpayer Assistance Section toll-free at (800) 782-2034.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner