Tax Type
Retail Sales and Use Tax
Description
College purchase of tangible personal property
Topic
Exemptions
Date Issued
07-28-1989
July 28, 1989
Re: Request for Ruling: Sales and Use Tax
Dear***************
This will reply to your letter of March 31, 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(4)(b).
RULING
Virginia Code §58.1-608(4)(b), provides a limited exemption from the retail sales and use tax for "[t]angible personal property for use or consumption by a college or other institution of learning...provided that such college...[or] institution of learning...is not conducted for profit."
Based on the purpose of your organization as outlined in the documentation 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 for use, and consumption by the Taxpayer.
Meals and lodging, however, are subject to the tax since they are for use and consumption by the individuals who receive them and not the Taxpayer. See Commissioner's Ruling dated May 27, 1988, copy enclosed, which sets forth the general policy that only certain nonprofit educational institutions and the federal government (in specific instances) can purchase meals and lodging exempt from the tax.
If you have any questions, please contact us.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner