Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization providing statistical data on motor vehicle crashes
Topic
Taxability of Persons and Transactions
Date Issued
12-23-1988
December 23, 1988
Re: Request for Ruling: Sales and Use Tax
Dear****************
This will reply to your letter dated December 2, 1988, in which you requested a ruling whether your organization and its affiliate qualify for exemption from sales and tax.
FACTS
********************("The Taxpayers "), are nonprofit organizations exempt from income taxation under Section 501(c)(3) of the Internal Revenue Code. The Taxpayers provide statistical data to legislatures, police departments, insurance companies, etc., with the goal of reducing motor vehicle crash losses (i.e. deaths, injuries, and property damage), as well as statistical information on the relative loss characteristics of specific vehicles for both personal injury losses and property losses caused by damage and theft.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations (see Virginia Regulation §630-10-74), copy enclosed. The only exemptions from the tax are set out in §58. 1-608 of the Code of Virginia. While I am mindful of the worthwhile purposes that the Taxpayers serve, absent a statutory exemption that would allow the Taxpayers to make purchases exempt from the tax, the department has no authority to grant such an exemption.
Therefore, the Taxpayers are required to pay the tax on all purchases of tangible personal property to the retailer at the time of purchase. If the retailer is not registered to collect the tax, the Taxpayers 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