Tax Type
Retail Sales and Use Tax
Description
Meals and hotel accommodations; Nonprofit organization
Topic
Taxability of Persons and Transactions
Date Issued
03-18-1988
March 18, 1988
Re: Request for Ruling/Sales and Use Tax
Dear***************
Governor Baliles has provided me with a copy of your letter dated February 23, 1988 in which you request that your organization, the*********** be allowed to purchase items under an exemption certificate for use at your Region 7 Assembly conference.
FACTS
*********** (taxpayer) is affiliated with the nationally recognized ************** nonprofit organization. Taxpayer charges no dues or fees, and is financed strictly by the freewill contributions of its members. Taxpayer will be hosting the Region 7 Assembly, a business meeting of members from Virginia, six neighboring states and Washington, D.C., in April. In order to minimize expenditures, taxpayer is seeking an exemption certificate to allow it to purchase items exempt 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 taxpayer to make purchases exempt from the tax, the department has no authority to grant such an exemption. I have enclosed for your review a copy of Virginia Regulation 630-10-74, which explains how the tax applies to nonprofit organizations.
Therefore, taxpayer will be required to pay the tax to the hotel on its purchases of food and beverages. I would note that even when a state or local government agency holds functions at a hotel, the agency is required to pay the tax on its purchases of food, beverages, or lodgings from the hotel. In addition, taxpayer will be required to pay the tax on all other purchases of tangible personal property to the retailer if he is registered to collect the tax. If the supplier is not registered to collect the sales and use tax, taxpayer must report and pay the tax on a Consumer Use Tax Return, Form ST-7.
I regret that I cannot respond favorably to your request. However, I do hope you have a successful function. If you have any further questions, please feel free to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner