Tax Type
Retail Sales and Use Tax
Description
Nonprofit educational organization providing residential training programs in psychology
Topic
Exemptions
Date Issued
03-28-2000
March 28, 2000
Re: Request for Ruling: Retail Sales andUse Taxx
Dear ****
This will reply to your letter in which you request a ruling on the application of sales and use tax to your organization, **** (the "Taxpayer"). I apologize for the delay in responding to your letter.
FACTS
The Taxpayer is a nonprofit educational organization that is exempt from federal income taxation under Internal Revenue Code § 501(c)(3). The Taxpayer provides residential training programs in the field of psychology. Students are housed in a dormitory and provided with meals while taking the training program. The cost of room and board is included in the tuition.
The Taxpayer seeks a ruling on whether charges for room and board are exempt from retail sales tax when included in the students' tuition.
RULING
Code of Virginia § 58.1-609.4(2)(I) provides an exemption from sales and use tax for "[t]angible personal property for use or consumption by a college or other institution of learning...." Title 23 of the Virginia Administrative Code (VAC) 10-210-4020(A)(1), copy enclosed, states that an "other institution of learning" must be similar to a college based on the following criteria: (1) it must employ a professionally trained faculty, (2) it must enroll and graduate students based on academic achievement, (3) it must prescribe courses of study, and (4) it must provide instruction at regular intervals over a reasonable period of time.
If the Taxpayer is an "other institution of learning" as defined by the criteria above, then charges for room and board that are included in tuition charges to students are exempt from the retail sales and use tax. This is the department's longstanding policy.
If you have any questions concerning this ruling, please contact **** at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/21694S
Re: Request for Ruling: Retail Sales andUse Taxx
Dear ****
This will reply to your letter in which you request a ruling on the application of sales and use tax to your organization, **** (the "Taxpayer"). I apologize for the delay in responding to your letter.
FACTS
The Taxpayer is a nonprofit educational organization that is exempt from federal income taxation under Internal Revenue Code § 501(c)(3). The Taxpayer provides residential training programs in the field of psychology. Students are housed in a dormitory and provided with meals while taking the training program. The cost of room and board is included in the tuition.
The Taxpayer seeks a ruling on whether charges for room and board are exempt from retail sales tax when included in the students' tuition.
RULING
Code of Virginia § 58.1-609.4(2)(I) provides an exemption from sales and use tax for "[t]angible personal property for use or consumption by a college or other institution of learning...." Title 23 of the Virginia Administrative Code (VAC) 10-210-4020(A)(1), copy enclosed, states that an "other institution of learning" must be similar to a college based on the following criteria: (1) it must employ a professionally trained faculty, (2) it must enroll and graduate students based on academic achievement, (3) it must prescribe courses of study, and (4) it must provide instruction at regular intervals over a reasonable period of time.
If the Taxpayer is an "other institution of learning" as defined by the criteria above, then charges for room and board that are included in tuition charges to students are exempt from the retail sales and use tax. This is the department's longstanding policy.
If you have any questions concerning this ruling, please contact **** at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/21694S
Rulings of the Tax Commissioner