Tax Type
Retail Sales and Use Tax
Description
Nonprofit boarding school; Exemption criteria
Topic
Exemptions
Date Issued
10-17-1986
October 17, 1986
Re: Ruling Request/ Sales and Use Tax
Dear ***********************
This will reply to your letter of July 29, 1986 seeking a sales and use tax exemption for ********* (taxpayer).
FACTS
Taxpayer is a small, independent, all girls' boarding school affiliated with the *********** Church, accredited by the state as a secondary school and organized under §501(c)(3) of the Internal Revenue Code. Taxpayer seeks exemption from the sales and use tax in making purchases from vendors of tangible personal property for use in connection with its school operations. Taxpayer also asks whether it must have a tax exempt identification number to supply its vendors in making any tax exempt purchases.
RULING
§58.1-608(23) of the Virginia Code provides an exemption from the sales and use tax for "[t]angible personal property for use or consumption by a college or other institution of learning,... provided such college, institution of learning, etc. is not conducted for profit.
§630-10-95 of the Virginia Retail Sales and Use Tax Regulations explains this exemption further by providing that in order to qualify as an "other institution of learning", a school 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. " (See copy enclosed)
Based on the information provided, I find basis for concluding that taxpayer qualifies as a nonprofit institution of learning for purposes of exemption from the sales and use tax.
Therefore, whenever taxpayer purchases tangible personal property for its own use or consumption or for the use or consumption of its students, teachers or other educators participating in taxpayer's educational programs, such purchases will qualify for exemption from the tax, provided an appropriate certificate of exemption, Form ST-13, (copies enclosed), is presented to its vendors at the time of purchase. Accordingly, it is not necessary for taxpayer to have a tax exempt identification number.
I hope that all of the above has responded to your questions, but please let me know if I may be of further assistance.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner