Virginia Exempt Sales Tax on Personal Property Taxes on Leases if Separately-Stated

Personal property taxes which are separately-stated on a lease are exempt from sales and use tax in Virginia. However, if property taxes are included in the total monthly rental amount they are be subject to sales and use tax. (Ruling of Commissioner, P.D. 08-187, Virginia Department of Taxation, October 17, 2008)

Posted on February 16, 2009