TITLE 23. TAXATION
REGISTRAR’S NOTICE: The Department of Taxation is claiming an exemption from the Administrative Process Act in accordance with § 2.2-4006 A 3, which excludes regulations that consist only of changes in style or form or corrections of technical errors. The Department of Taxation will receive, consider and respond to petitions by any interested person at any time with respect to reconsideration or revision.
Title of Regulation: 23VAC10-210. Retail Sales and Use Tax (adding 23VAC10-210-595; repealing 23VAC10-210-170, 23VAC10-210-870, 23VAC10-210-4010).
Statutory Authority: § 58.1-203 of the Code of Virginia.
Effective Date: November 26, 2008.
Agency Contact: Bland Sutton, Analyst, Department of Taxation, 600 East Main Street, Richmond, VA 23219, telephone (804) 371-2332, FAX (804) 371-2355, or email bland.sutton@tax.virginia.gov.
Summary:
Currently, there are three separate, nearly identical, regulation sections addressing banks, loan and finance companies, and savings and loan associations. This regulatory activity will repeal the three existing regulation sections and combine them into a new section, 23VAC10-210-595, Financial institutions. This change will not impact or change the current policy of the Department of Taxation with respect to financial institutions.
23VAC10-210-170. Banks. (Repealed.)
The tax applies to purchases of tangible personal property by all national and state banks for their use and consumption.
When any bank engages in selling, leasing or renting tangible personal property to consumers, it must register as a dealer and collect and pay the tax to the Department of Taxation.
Taxable sales by banks include, but are not limited to, sales of checks and checkbooks; silverware; savings or piggy banks; repossessed merchandise; gold and silver coins or bars for investment purposes; and charges for the lease or rental of tangible personal property.
The rental of safe deposit boxes is not subject to the tax. For trustees, see 23VAC10-210-6010.
23VAC10-210-595. Financial institutions.
A. Purchases. The tax applies to purchases of tangible personal property by all national, state and local banks, savings and loan associations, and loan and finance companies.
B. Sales. When any bank, savings and loan association, or loan and finance company engages in selling, leasing or renting tangible personal property to consumers or users, it must register as a dealer and collect and pay the tax to the Department of Taxation. The tax applies to all sales even if the property has been repossessed or obtained by default of the borrower.
The rental of safe deposit boxes does not qualify as the rental of tangible personal property and is not subject to the tax. For trustees, see 23VAC10-210-6010.
23VAC10-210-870. Loan and finance companies. (Repealed.)
The tax applies to purchases of tangible personal property by all loan and finance companies and like associations for their use or consumption. When the association engages in selling, leasing or renting tangible personal property to consumers or users, it must register as a dealer and collect and pay the tax due even if the property has been repossessed or obtained by default of borrowers.
23VAC10-210-4010. Savings and loan associations. (Repealed.)
The tax applies to purchases of tangible personal property by all savings and loan and building and loan associations for their use or consumption. When such an association engages in selling, leasing or renting tangible personal property to consumers or users, it must register as a dealer and collect and pay the tax due to the Department of Taxation.
VA.R. Doc. No. R09-1640; Filed October 6, 2008, 3:50 p.m.