Palace Laundry, Inc. v. Chesterfield County

OPINION BY Justice S. BERNARD GOODWYN.

In this appeal, we consider whether a linen rental company that cleans its own linens is a processing business for purposes of Code § 58.1-3507(A).

In 2004, the Chesterfield County Tax Commissioner assessed the standard business tangible personal property tax on property used by Palace Laundry, Inc., d/b/a/ Linens of the Week ("Palace Laundry"). Palace Laundry appealed the determination to the State Tax Commissioner, who concluded that Palace Laundry was a processing business entitled to a reduced tax rate on tools and machinery used in its processing…