Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization educating radiologic technologists
Topic
Taxability of Persons and Transactions
Date Issued
09-20-1989
September 20, 1989
Re: Request for Ruling: Sales and Use Tax
Dear *******
This is in reply to your letters of April 24 and June 13, 1989, 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 opportunities for radiologic technologists. 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