Virginia: No Exemption on Leased Printer
- Sales Tax News
- Oct 2, 2012 | Gail Cole
A Taxpayer who runs a full-service print and visual communications company entered into a lease agreement for a printer. Initially, the lessor did not charge Virginia retail sales tax for the printer. The lessor later realized the printer was, in fact, liable for the sales tax because it did not meet the qualifications for exemption as required by Va. Code § 58.1-609.311. On June 29, 2012, the Tax Commissioner ruled that "the lessor is properly charging the tax on the equipment lease."
After a request for further clarification from the Taxpayer and a visit to the Taxpayer from the Department's auditor, the Tax Commissioner upheld his initial ruling that the printer does not qualify for the exemption delineated in Va. Code § 58.1-609.311.
According to Va. Code § 58.1-609.311, there is an exemption for:
"High speed electronic duplicators or any other duplicators which have a printing capacity of 4,000 impressions or more per hour purchased or leased by persons engaged primarily in the printing or photocopying of products for sale or resale."
The printer in question did not produce 4,000 impressions or more per hour, therefore it does not qualify for the exemption.
It's all in the details.