Tax Type
Retail Sales and Use Tax
Description
Determination of exempt status
Topic
Exemptions
Date Issued
05-26-2000
May 26, 2000
Dear ****
This is in reply to your letter of March 20, 2000, regarding the retail sales and use tax exemption granted to ***** (the "Taxpayer').
The Taxpayer is organized to help parents with the Catholic education of their children in all subject areas, in grades kindergarten through high school. The Taxpayer graduates students from its high school based on academic achievement. The Taxpayer is accredited by the Southern Association of Schools and Colleges and its program is approved by the Virginia Department of Education. The Taxpayer serves an enrollment of approximately 10,000 students and serves several thousand more families through book sales and by furnishing materials to small Catholic schools. The students are taught in the homes by their parents.
Code of Virginia Sec. 58.1-609.4(2)(i) provides an exemption for a nonprofit college or "other institution of learning....' As it has been determined, the Taxpayer is not a college; therefore it must meet the definition of "other institution of learning' in order to qualify for the exemption. Title 23 of the Virginia Administrative Code (VAC) 10-210-4020 states that an institution of learning must be similar to a college, i.e., it must:
Based on the information provided, I find that the Taxpayer satisfies the criteria in Code of Virginia Sec. 58.1-609.4(2). Accordingly, the Taxpayer qualifies for the exemption, which is effective through June 30, 2001. Please note that the scope of the exemption is limited to tangible personal property purchased by the Taxpayer for its own use or consumption. The Taxpayer should continue to use the Sales and Use Tax Certificate of Exemption, Form ST-13 when making purchases exempt of the tax.
Virginia law now requires nonprofit organizations, except churches, exempt from the sales and use tax to submit to the Department of Taxation updated information relating specifically to the operation and administration of the organization. The initial filing is due July 1, 2000. A questionnaire, Request for Extension of Sales and Use Tax Exemption (copy enclosed) has been developed by the department for reporting the required information. I have also enclosed a copy of Tax Bulletin 99-9 regarding the new reporting requirement for nonprofit organizations. The law provides that failure to file a complete and timely questionnaire can result in the revocation of your organization's sales and use tax exemption.
I certainly apologize for the any inconvenience this matter has caused you. If you have any questions or if the Department of Taxation can be of assistance, please contact ***** at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/28532C
Dear ****
This is in reply to your letter of March 20, 2000, regarding the retail sales and use tax exemption granted to ***** (the "Taxpayer').
The Taxpayer is organized to help parents with the Catholic education of their children in all subject areas, in grades kindergarten through high school. The Taxpayer graduates students from its high school based on academic achievement. The Taxpayer is accredited by the Southern Association of Schools and Colleges and its program is approved by the Virginia Department of Education. The Taxpayer serves an enrollment of approximately 10,000 students and serves several thousand more families through book sales and by furnishing materials to small Catholic schools. The students are taught in the homes by their parents.
Code of Virginia Sec. 58.1-609.4(2)(i) provides an exemption for a nonprofit college or "other institution of learning....' As it has been determined, the Taxpayer is not a college; therefore it must meet the definition of "other institution of learning' in order to qualify for the exemption. Title 23 of the Virginia Administrative Code (VAC) 10-210-4020 states that an institution of learning must be similar to a college, i.e., it must:
- (a) employ a professionally-trained faculty; (b) enroll and graduate students on the basis of academic achievement; (c) prescribe courses of study; and (d) provide instruction at regular intervals over a reasonable period of time.
Based on the information provided, I find that the Taxpayer satisfies the criteria in Code of Virginia Sec. 58.1-609.4(2). Accordingly, the Taxpayer qualifies for the exemption, which is effective through June 30, 2001. Please note that the scope of the exemption is limited to tangible personal property purchased by the Taxpayer for its own use or consumption. The Taxpayer should continue to use the Sales and Use Tax Certificate of Exemption, Form ST-13 when making purchases exempt of the tax.
Virginia law now requires nonprofit organizations, except churches, exempt from the sales and use tax to submit to the Department of Taxation updated information relating specifically to the operation and administration of the organization. The initial filing is due July 1, 2000. A questionnaire, Request for Extension of Sales and Use Tax Exemption (copy enclosed) has been developed by the department for reporting the required information. I have also enclosed a copy of Tax Bulletin 99-9 regarding the new reporting requirement for nonprofit organizations. The law provides that failure to file a complete and timely questionnaire can result in the revocation of your organization's sales and use tax exemption.
I certainly apologize for the any inconvenience this matter has caused you. If you have any questions or if the Department of Taxation can be of assistance, please contact ***** at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/28532C
Related Documents
Rulings of the Tax Commissioner