Tax Type
Retail Sales and Use Tax
Description
War Veterans Reunion
Topic
Taxability of Persons and Transactions
Date Issued
03-03-1988
March 3, 1988
Re: Request for Ruling/Sales and Use Tax
Dear****************
This is in reply to your letter dated January 19, 1988 in which you request that your organization, the be allowed to purchase items under an exemption certificate for use at your 41st annual reunion.
FACTS
************** (Association) is a nonprofit organization comprised of the ************** veterans of World War II. Association holds annual reunions in various parts of the country and this year will hold its 41st annual reunion at the Marriott Hotel in Richmond, Virginia. In order to minimize expenditures for this None-time-only" function in Virginia, Association request that the Marriott Hotel be given authority to exempt Association's luncheon and banquet from the Virginia retail sales and use tax.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations. The only exemptions from the tax are set out in §58.1-608 of the Code of Virginia. Absent a statutory exemption that would allow Association to make purchases exempt from the tax, the department has no authority to grant such an exemption.
Because of this, Association will be required to pay the tax to the hotel on its purchases of food and beverages. It should be noted that the same holds true when a state or local government agency purchases food, beverages, or lodgings from a hotel.
I regret that I cannot respond affirmatively to your request; however, I wish the Association a successful reunion. If you have any further questions, please feel free to get in touch.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner