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July 11, 1994 02:00 AM

VA. DEALERS MIGHT OWE BACK TAXES: INQUIRY CENTERS AROUND DISPOSAL FEES

Kathy McCarron
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    RICHMOND, Va.Some Virginia tire dealers experienced an unpleasant surprise recently when state auditors found out they had failed to collect sales tax on their tire disposal fees over the past three years. In fact, many tire dealers thr oughout the state haven't been charging sales tax on add-on disposal fees they charge customers because the requirement was never publicized, according to Steve Akridge, executive director of the Virginia Tire & Automotive Service Dealers Association.

    In mid June, the association discussed the issue with the state tax commissioner and is now awaiting a ruling that could come as early as mid July on whether dealers will have to pay back taxes.

    Tim Winks, the state's as sistant commissioner for tax policy, said the department is still doing background research to determine the extent of the non-compliance. If the department finds there is widespread misconception of the tax code, he said, the state will educate dealers and offer relief from owing back taxes.

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