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The Virginia Department of Taxation responded to a letter from an individual who served as the vice president, secretary and treasurer of a corporation who was assessed for unpaid sales and use taxes. After the Department failed to collect the assessment from the corporation, the assessment was levied on the individual. In its letter, the state found that it was correct in assessing the individual for the liabilities. The state found that the act of corporate underpayment was "voluntary, conscious and intentional" and the liability could be transferred to the individual corporate officer who was acting as the responsible officer. (Ruling of the Commissioner, P.D. 09-149, Virginia Department of Taxation, October 8, 2009)


The Virginia Senate has introduced legislation to conform Virginia laws to the Streamlined Sales and Use Tax Agreement, effective July 1, 2011. Previous sessions have failed to pass this legislation. (S.B. 340, as introduced in the Virginia Senate on January 13, 2010)


In response to a taxpayer’s letter, the Virginia Department of Taxation agreed with a retail sales tax assessment imposed on the taxpayer’s business that sells gas, diesel and heating fuels. The assessment properly included both the federal leaking underground storage tax and federal storage tax. Both storage taxes were directly in connection with the sale of fuel by the taxpayer, and should have been included in the sales prices for the intention of computing the sales and use tax on the taxpayer’s sale of fuel to its customers. Also, the storage taxes were not specifically listed in Virginia Code §58.1602 as the type of taxes that were excluded from the sales price for the purposes of computing the Virginia sales and use tax. Accordingly, the taxpayer’s sales of gas, diesel and heating fuels were subject to Virginia sales and use tax. (Ruling of Commissioner, P.D. 09-161, Virginia Department of Taxation, October 16, 2009)


Virginia has issued rules and guidelines for its upcoming tax amnesty program. The 2009 Virginia Tax Amnesty program will run from October 7, 2009 to December 5, 2009 and will generally apply to any taxes administered or collected by the Virginia Department of Taxation. Penalties and one-half interest will be waived for all eligible amnesty tax assessments and delinquent return liabilities provided full payment of the tax and one-half interest is made. In order to qualify, tax bills must be related to an amnesty eligible tax type and period and have an assessment date on or before July 9, 2009, while returns must be applicable to an eligible tax type and period. With respect to amnesty eligible bills with an assessment date on or before July 9, 2009, payments must be postmarked by December 5, 2009. For delinquent tax returns, taxpayers are required to file by December 5, 2009 all relevant tax returns and associated documentation, and pay the tax and one-half of the interest that’s due by December 5, 2009, or within 30 days of the date the assessment was issued, whichever is later. The Department has also noted that if delinquent taxpayers do not pay their tax bill by December 5, 2009, they will be charged full interest and an additional 20 percent penalty for late taxes. (Ruling of Commissioner, P.D. 09-40, Virginia Department of Taxation, September 28, 2009; Press Release, Office of Virginia Gov. Tim Kaine, September 28, 2009)


A brick manufacturer’s minimum load charges were exempt from Virginia sales and use tax because they were separately-stated. The manufacturer uses a third party trucking company for deliveries to customers. The trucking company charges on a full load basis no matter how much brick is actually carried. Because of the rising cost of shipping and fuel, the trucking company’s charges were usually higher than the amount of freight. To recover the difference, the manufacturer charges a minimum load charge. The minimum load charges are add-on transportation or delivery charges, not handling charges or other taxable services in connection with a sale (Ruling of Commissioner, P.D. 09-76, Virginia Department of Taxation, May 26, 2009).



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