Tax Type
Retail Sales and Use Tax
Description
Purchases by federal instrumentality
Topic
Exemptions
Date Issued
04-11-1984
April 11, 1984
Re: Ruling Request: Sales & Use Tax
Dear ******************
This will reply to your letters of November 17, 1983 and January 12, 1984, as supplemented by letter dated February 29, 1984 of in which you request an exemption from Virginia retail sales and use tax for purchases by the ***** (the "Fund").
FACTS
§ 4312(a) of the United States Code provides that "National Matches" shall be held as prescribed by the Secretary of the Army. ***** noted that Army Regulation 920-35 established the ***** Fund" on February 13, 1956 to promote the welfare and morale of Armed Forces personnel and civilians in the marksmanship training program fostered by the National Board for the Promotion of Rifle Practice. The Fund is administered by the Council, comprised of full-time federal officers or employees primarily engaged in operational functions. ***** stated that the Department of the Army considers the Fund to be an official instrumentality of the U. S. Government.
DETERMINATION
Based on the information presented, we have determined that the Fund is an instrumentality of the U.S. Government. § 58-441.6(p) of the Code of Virginia and Virginia Retail Sales and Use Tax Regulations 1-4 exempt from retail sales and use tax sales to the United States if the purchases are pursuant to required official purchase orders to be paid for out of public funds. Accordingly, purchases by the Fund would be exempt from Virginia retail sales and use tax to the extent that they are made pursuant to official purchase orders to be paid for out of funds of the Fund. Individuals are not eligible for the exemption even if they are reimbursed by the Fund for their expenditures.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner