Tax Type
Retail Sales and Use Tax
Description
Church purchases; Limits of exemption
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
05-22-1989
May 22, 1989
Re: Request for Ruling: Sales and Use Tax
Dear *****************
This is in reply to your letter dated December 13, 1988 in which you requested that the department reevaluate your application for an exemption from the sales and use tax under §58.1-608(38) of the Code of Virginia.
§58.1-608(38) of the Code of Virginia exempts from the tax certain tangible personal property when purchased by a nonprofit church for use in carrying out the work of the church. However, the exemption applies only to individual church congregations; denominational governing bodies and related organizations do not enjoy the exemption. Further, the exemption is generally limited only to property used inside public church buildings.
Therefore, while the Taxpayer is involved in many worthwhile activities, the church exemption is not applicable to its activities. Therefore, as set forth in my earlier correspondence, the Taxpayer is required to pay the tax on all purchases of tangible personal property in Virginia.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner