58.1-624 - Direct payment permits.
§ 58.1-624. Direct payment permits.
A. Notwithstanding any other provision of this chapter, the Tax Commissionermay authorize a manufacturer, mine operator, or public service corporationthat is a user, consumer, distributor, or lessee to which sales,distributions, leases, or storage of tangible personal property are madeunder circumstances which normally make it impossible at the time thereof todetermine the manner in which such property will be used by such person, orany person who stores tangible personal property in this Commonwealth for useboth within and outside this Commonwealth, to pay any tax levied by thischapter directly to this Commonwealth and waive the collection of the tax bythe dealer. No such authority shall be granted or exercised except uponapplication to the Tax Commissioner and the issuance by the Tax Commissionerof a direct payment permit. If a direct payment permit is granted, thenpayment of the tax on all sales, distributions, and leases, including sales,distributions, leases, and storage of tangible personal property and sales oftaxable services for use known at the time thereof, shall be made directly tothe Tax Commissioner by the permit holder.
B. On or before the twentieth day of each month every permit holder shallmake and file with the Tax Commissioner a return for the preceding month inthe form prescribed by the Tax Commissioner showing the total value of thetangible personal property so used, the amount of tax due from the permitholder, which amount shall be paid to the Tax Commissioner with such return,and such other information as the Tax Commissioner deems necessary. The TaxCommissioner, upon written request by the permit holder, may grant areasonable extension of time for making and filing returns and paying thetax. Interest on such tax shall be chargeable on every such extended paymentat the rate determined in accordance with § 58.1-15.
C. A permit granted pursuant to this section shall continue to be valid untilsurrendered by the holder or cancelled for cause by the Tax Commissioner.
D. Persons who hold a direct payment permit which has not been cancelledshall not be required to pay the tax to the dealer as otherwise hereinprovided. Such persons shall notify each dealer from whom purchases or leasesof tangible personal property are made of their direct payment permit numberand that the tax is being paid directly to the Tax Commissioner. Upon receiptof such notice, such dealer shall be absolved from all duties and liabilitiesimposed by this chapter for the collection and remittance of the tax withrespect to sales, distributions, leases, or storage of tangible personalproperty to such permit holder. Dealers who make sales upon which the tax isnot collected by reason of the provisions of this section shall maintainrecords in such manner that the amount involved and identity of each suchpurchaser may be ascertained.
E. Upon the cancellation or surrender of a direct payment permit, theprovisions of this chapter, without regard to this section, shall thereafterapply to the person who previously held such permit, and such person shallpromptly so notify in writing dealers from whom purchases, leases, andstorage of tangible personal property are made of such cancellation orsurrender. Upon receipt of such notice, the dealer shall be subject to theprovisions of this chapter, without regard to this section, with respect toall sales, distributions, leases, or storage of tangible personal propertythereafter made to such person.
(Code 1950, § 58-441.33; 1966, c. 151; 1981, c. 95; 1984, c. 675.)