Reusable Sandwich Bags Do Not Qualify as School Supplies for Virginia Sales Tax Holiday

Thursday, July 24th, 2014

 
 
A reusable sandwich bag.
Share
Link
Virginia
General

The Virginia Department of Taxation ("Department") recently released a ruling that fabric sandwich bags do not qualify as school supplies for the sales tax holiday in August.

The taxpayer designed and sold insulated fabric sandwich and snack bags and wraps. The bags and wraps were marketed and sold for use in student lunch bags in place of disposable plastic bags. The taxpayer sold the bags and wraps separately from lunch boxes or lunch bags.

Virginia's annual sales tax holiday applies to certain school supplies and clothing. "School supplies" are items that are commonly used by students in the course of study. Official guidelines provide an all-inclusive list of school supplies that qualify for the holiday exemption. The list includes lunch boxes.

The Department ruled that the bags and wraps did not qualify as school supplies. Although the bags and wraps served a similar purpose as lunch boxes, they were not "lunch boxes" as the term was commonly understood. The term "lunch box" typically referred to a small container that was used to transport a person's lunch and that accommodated a sandwich, or other food, and a drink. The reusable bags and wraps only accommodated sandwiches and were therefore not lunch boxes. Because the bags and wraps were not lunch boxes, they were not on the list of qualifying school supplies and thus were not eligible for the sales tax holiday.

http://www.policylibrary.tax.virginia.gov/OTP/Policy.nsf/ccd0d2ea93db9ba485256968006a39ed/bb897896e177872885257d19004a1a65?OpenDocument


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...

Iowa Supreme Court Determines Taxable Carpentry Services...

Wednesday, January 9th, 2019 -The Iowa Supreme Court has recently addressed the taxability of various installation services. The taxpayer wa...

Tax Applies to Metallurgical Coke in Illinois

Monday, January 7th, 2019 -Illinois recently ruled that use tax was due on purchases of metallurgical coke. The taxpayer was a business t...