Tax Type
Retail Sales and Use Tax
Description
Summer camp for children
Topic
Taxability of Persons and Transactions
Date Issued
09-19-1989
September 19, 1989
Re: Request for Ruling: Sales and Use Tax
Dear**************
This is in reply to your recent letter in which you request a ruling whether your organization qualifies for exemption from the sales and use tax.
FACTS
******** ("The Taxpayer"), a nonprofit organization exempt from income taxation under §501 (c)(3) of the Internal Revenue Code. provides educational and recreational programs for children who have "medical challenges" and healthy children of all ages. To date. the program has been operated primarily as a summer camp program, yet plans are being made to implement a year-round after-school enrichment program for tutoring in various subjects as well as pottery and other crafts and creative writing. You seek an exemption to allow the Taxpayer 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 (see §630-10-74 of Virginia Retail Sales and Use Tax Regulations). The only exemptions from the tax are set out in Virginia Code §58.1-608. While I am mindful of the worthwhile purpose that the Taxpayer serves. absent a statutory exemption that would allow the Taxpayer to make purchases exempt from the tax. the department has no authority to grant such an exemption.
Therefore, the Taxpayer is required to pay the tax to the retailer on all Purchases of tangible personal property if the retailer is registered to collect the tax. If the retailer is not registered to collect the tax, the Taxpayer must report and pay the use tax on a Consumer Use Tax Return. Form ST-7.
If I can be of further assistance, please contact the department
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner