Tax Type
Retail Sales and Use Tax
Description
Church purchases; Building materials; Equipment and supplies for mailing list
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
10-17-1984
October 17, 1984
Re: Ruling Request: Sales and Use Tax
Dear *******************
This will reply to your letter of May 22, 1984 concerning the applicability of sales and use tax to purchases of tangible personal property by nonprofit churches.
Form ST-13A, a copy of which is enclosed, does not require an exemption number. The Form, issued May, 1984, reflects changes in the Code of Virginia and regulations, effective July 1, 1984. A copy of the regulations is also enclosed.
Under the new law, there is a continued exemption for 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. Property used in recording or reproducing religious worship services continues to be subject to the tax. A new exemption exists for a nonprofit church's purchase of tangible personal property for use in any rooms in the public church buildings used in carrying out the work of the church and its related ministries. "Public church building" has its common meaning, that is, a building, the primary purpose of which is to house regularly scheduled religious worship services.
In response to your specific questions, a purchase by the church of tangible personal property used in the public church buildings to handle a mailing list and correspondence with the general membership, including activities and times, would be exempt unless the correspondence was printed outside the public church buildings. Administrative supplies (such as letterhead and envelopes) used in the public church buildings in carrying out the work of the church and its related ministries similarly would be exempt. Quarterly correspondence to members regarding their contributions would, therefore, be exempt provided that the correspondence was not printed outside the public church buildings and that it related to the work of the church and its related ministries.
Any construction or building materials for a church-sponsored school or for the sanctuary of a church would be subject to the tax, because such materials would be affixed to or become part of the real estate.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner