Document Number
05-9
Tax Type
Retail Sales and Use Tax
Description
Items at issue for use in a religious worship service
Topic
Exemptions
Date Issued
02-03-2005

February 3, 2005


Re: § 58.1-1821 Application: Retail Sales and Use Tax

Dear *****:

This is in response to your letter in which you seek correction of the retail sales and use tax assessment issued to ***** (the "Taxpayer") by the Department for the period of May 2001 through April 2004.

FACTS

The Taxpayer is a wholesaler of kitchen equipment, selling primarily to retail and catering businesses. The Taxpayer sold astro foam and plastic sheeting to the ***** (the "Church"). The items purchased by the Church were for use in a religious worship service at the ***** (the "Center"), located in Virginia. The worship service was held at the Center because the public church building operated by the Church would not accommodate all the worshipers attending the service. The Church provided, and the Taxpayer accepted, a completed exemption certificate (Form ST-13A) from the Church.

The Department's auditor assessed sales tax on the transaction because the items at issue were delivered to the Center, which is not a part of the public church building. The Taxpayer and the Church contend that the items sold to the Church were used in a religious worship service, and the Center was used as a public church building. Furthermore, the facility was open to the public to attend the religious worship service. Based on these factors, the Taxpayer requests that the transaction be held exempt from sales and use tax.
DETERMINATION

Code of Virginia § 58.1-609.10(16) exempts from Virginia retail sale and use tax tangible personal property purchased by a nonprofit church for use, "in religious worship services by a congregation or church membership while meeting together in a single location . . . ."

Based on the information provided, the transaction at issue qualifies for the exemption outlined in Va. Code § 58.1-609.10 16. The Taxpayer and the Church have demonstrated that the items at issue were for use in a religious worship service, and the service was held at a single location, as required by the exemption statute. Furthermore, the Taxpayer accepted a properly completed exemption certificate to document the exempt sale to the Church. Accordingly, the assessment issued to the Taxpayer will be abated.

The Code of Virginia sections cited, along with other reference documents, are available on-line in the Tax Policy Library section of the Department of Taxation's website, located at www.policylibrary.tax.virginia.gov. If you have any questions about this response, you may contact ***** in the Department's Office of Policy and Administration, Appeals and Rulings, at *****.
                • Sincerely,


                • Kenneth W. Thorson
                    • Tax Commissioner




AR/52846.i


Rulings of the Tax Commissioner

Last Updated 08/25/2014 16:46