Tax Type
Retail Sales and Use Tax
Description
Yearbooks sold to colleges
Topic
Taxability of Persons and Transactions
Date Issued
04-10-1989
April 10, 1989
Re: Ruling Request/ Sales and Use Tax
Dear*********************
This will reply to your letter of February 7, 1989 seeking information on the application of the sales and use tax to sales by **************** (taxpayer), of yearbooks to colleges.
FACTS
You state that some colleges currently purchase their annual yearbooks from the taxpayer for distribution to their students. The source of funds for such purchases vary from college to college, but typically include student activities fees, sales of advertising space, or patron solicitation.
You ask whether colleges may purchase such yearbooks exempt from sales and use tax, under the recently expanded exemption in Virginia Code §58.1-608(63).
RULING
In accord with the enclosed May 10, 1988 rulings of the department, the exemption in Virginia Code §58.1-608(63) does not apply to purchases by colleges or universities.
As indicated in the enclosed rulings, the exemption for nonprofit colleges and institutions of learning in Virginia Code §58.1-608(23) only applies to purchases for the use and consumption of such colleges and institutions of learning paid for using their own funds. In this regard, Virginia Retail Sales and Use Tax Regulation (VR) 630-10-96(A)(6), copy enclosed, also specifically provides that:
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- With respect to purchases of tangible personal property paid for out of funds other than public funds or funds of the nonprofit institution of learning, the tax applies if such tangible personal property is for the use of any school class, club, group, organization, association or individual. Such items cannot be purchased under certificates of exemption, and the tax must be paid to dealers. These items include yearbooks, class rings, graduation gowns and caps, photographs, school supplies, etc., for use by students. (Emphasis added)
- With respect to purchases of tangible personal property paid for out of funds other than public funds or funds of the nonprofit institution of learning, the tax applies if such tangible personal property is for the use of any school class, club, group, organization, association or individual. Such items cannot be purchased under certificates of exemption, and the tax must be paid to dealers. These items include yearbooks, class rings, graduation gowns and caps, photographs, school supplies, etc., for use by students. (Emphasis added)
Please let the department know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner