Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Nursing home
Topic
Exemptions
Date Issued
11-17-1986
November 17, 1986
Re: Ruling Request/ Sales and Use Tax
Dear ******************
This will reply to your letter of October 16, 1986 seeking exemption from Virginia's sales and use tax for purchases made by the ************** (taxpayer).
There is no general exemption in the sales and use tax for purchases made by charitable or nonprofit organizations; therefore I cannot find basis for granting an exemption to taxpayer in this case.
However, in reviewing the specific sales and use tax exemptions which are available, it is possible that taxpayer might qualify for the exemption set forth in §58.1-608(23) which provides that the sales and use tax does not apply to, "[t]angible personal property for use or consumption by a ... a licensed nursing home or a licensed nonprofit nonstock home for adults as defined by subsection A of §63.1-172 [of the Virginia Code], ... provided such ... licensed nursing home or home for adults is not conducted for profit."
Therefore, if taxpayer meets all of the criteria set forth in the above referenced subsection or any other subsection of §53.1-608 of the Code, it may qualify for an exemption from the sales and use tax. However, it should be noted that all exemptions from the sales tax are strictly construed against a finding of exemption, so that when a statute is susceptible to alternative constructions, one granting an exemption and the other denying it, the latter construction will be adopted. Winchester TV Cable Co. v. State Tax Commissioner, 216 Va. 286 217 S.E. 2d 885 (1975).
Please also find enclosed a copy of §630-10-47 of the Virginia Retail Sales and Use Tax Regulations governing hospitals and nursing homes. I hope this information has been of assistance to you, but please let me know if we can be of further assistance.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner