Chesapeake Hospital Authority v. Commonwealth

On April 3, 1997, the Commonwealth of Virginia, Department of Taxation (the Department) issued a notice of assessment to Chesapeake Hospital Authority, d/b/a Chesapeake General Hospital (the Hospital), for use tax on the cost of certain food prepared and served by the Hospital during the assessment period beginning December 1, 1993, and ending November 30, 1996. The Hospital filed an administrative application for correction of erroneous assessment with the Tax Commissioner pursuant to Code § 58.1-1821. On May 19, 1998, the Tax Commissioner issued a determination letter upholding the…