Tax Type
Retail Sales and Use Tax
Description
Nonprofit cancer foundation
Topic
Taxability of Persons and Transactions
Date Issued
12-12-1988
December 12, 1988
Re: Request for Ruling: Retail Sales and Use Tax
Dear******************
This will reply to your letter dated November 28, 1988, in which you requested a ruling whether your organization qualifies for exemption from sales and use tax.
FACTS
************** ("The Foundation"), a nonprofit organization exempt from income taxation under Section 501(c)(3) or the Internal Revenue Code, solicits contributions through direct mail to help fight cancer. The Foundation supports forty-two research projects and maintains cancer prevention and control education programs.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations (see enclosed copy or Va. Regulation 630-10-74). The only exemptions from the tax are set out in §58.1-608 or the Code or Virginia (copy enclosed). While I am mindful of the worthwhile purpose that the Foundation serves, absent a statutory exemption that would allow the Foundation to make purchases exempt from the tax, the department has no authority to grant such an exemption.
Therefore, the Foundation is required to pay the tax on all purchases or tangible personal property to the retailer at the time of purchase. If the retailer is not registered to collect the tax, the Foundation must report and pay the use tax on a Consumer Use Tax Return, ST-7.
If I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner