Tax Type
Retail Sales and Use Tax
Description
English language classes
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
08-18-1988
August 18, 1988
Re: Request for Ruling/Retail Sales and Use Tax
Dear****************
This is in reference to your letter of June 30, 1988, in which you requested a ruling as to whether **************** ("The Taxpayer") qualifies for exemption from retail sales and use tax.
FACTS
The Taxpayer is opening a school in the Commonwealth of Virginia for the education of adult foreign students in the English language and American culture. Students will be instructed in grammar, vocabulary and conversational practice.
The school's program is designed according to various levels of proficiency within the language studied. Every student is required to take a written and oral examination to determine language ability, at which proficiency level they will enter the program, and which elective courses will be most appropriate. The school employs a professionally trained faculty; each teacher holds a college degree.
A core course of study is required for each program of study (each proficiency program has a separate core course). Every two weeks a progress test is given and every four weeks a graded examination is held. Progress to the core course at the next difficulty level or, if a student's course of study is over, the final grades as reflected on the graduation certificate are based upon this exam.
The core course can be supplemented by additional courses in specific areas of language study selected by the student.
Classes are held on a daily basis and students receive approximately 30 classroom hours per week. Courses of study range from a short intensive course of four weeks up to twenty-one weeks. The average course is twelve weeks in length and this includes 360 hours of instruction all focused on a single language.
At the conclusion of a program of study, a student receives a certificate setting forth grades in each of the various aspects of language skill. Graduation to the next level of study is based upon grades.
RULING
Virginia Code §58.1-608(23), exempts from sales and use taxation, tangible personal property used or consumed " by a college or other institution of learning...provided such college or institution of learning...is not conducted for profit."
Virginia Retail Sales and Use Tax Regulation §630-10-96(A)(1), provides that for an organization to qualify as an "institution of learning" for purposes of sales and use tax exemption, the organization must:
-
- a) Employ a professionally trained faculty.
b) Enroll and graduate students on the basis of academic achievement.
c) Prescribe courses of study.
d) Provide instruction at regular intervals over a reasonable period of time.
- a) Employ a professionally trained faculty.
Therefore, whenever the Taxpayer purchases tangible personal property for its own use or consumption, such purchases will qualify for exemption from the tax, provided an appropriate certificate of exemption, Form ST-13, (copy enclosed), is presented to the vendor at the time of purchase. Exempt purchases are to be used only for the operation of the Taxpayer's institution of learning. A copy of Virginia Retail Sales and Use Tax Regulations 630-10-96, which explains the exemption is also enclosed.
If you have any further questions, please contact the Department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner