89-175 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Residential youth shelter organization

Topic

Exemptions

Date Issued

05-31-1989

May 31, 1989

Re: Request for Ruling: Sales and Use Tax

Dear***************

This will reply to your letter of April 20, 1989, in which you requested a ruling as to whether *********** ("The Taxpayer") qualifies for exemption from sales and use tax under Virginia Code §58.1-608(61).

Virginia Code §58.1-608(61), provides an exemption from retail sales and use tax for:

- Tangible personal property, including food and food products, purchased for use or consumption by a residential youth shelter organization exempt from taxation under §501 (c)(3) of the Internal Revenue Code provided such organization is organized exclusively for maintaining and operating group homes for the shelter and care of abused and neglected children in the Commonwealth on a long-term or short-term basis.

Based on the purpose of your organization as outlined in the Articles of Incorporation and the facts you have provided, I find that your organization qualifies for the exemption cited above. Please note that this exemption applies only to tangible personal property purchased for use and consumption by the Taxpayer and does not apply to purchases by contractors or others on behalf of your organization.

If you have any further questions, please contact the department.

Sincerely,

W. H. Forst
Tax Commissioner

Rulings of the Tax Commissioner