Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization assisting the disabled
Topic
Taxability of Persons and Transactions
Date Issued
10-25-1989
October 25, 1989
Re: Ruling Request/Sales and Use Tax
Dear****************
This will reply to your letter of September 5, 1989 seeking an exemption from the sales and use tax for **************(Taxpayer).
FACTS
The Taxpayer is a nonprofit organization which conducts research, disseminates findings and makes recommendations to resolve problems affecting the disabled, and to address social problems, education, and economic issues.
Most of the Taxpayer's programs focus on improving the functional capacity of persons with disabilities through increasing the flow of modern technology. The Taxpayer's research into problems of the disabled may concern issues such as safety and liability, alternative payment strategies, and universal accessibility designs.
The Taxpayer seeks a sales tax exemption based on various meetings which it conducts in Virginia as part of its ongoing research activities.
RULING
The enclosed December 12, 1988 ruling concerned a 501(c)(3) foundation seeking an exemption similar to the one sought by the Taxpayer in this case.
Based on the information provided, the Taxpayer does not appear to meet any of the statutory criteria for exemption from Virginia's sales tax.
However, some of the Taxpayer's research activities may qualify for the exemption in Virginia Code §58.1-608(3)(e) for tangible personal property used directly and exclusively in basic research or research and development in the experimental or laboratory sense. I have also enclosed a copy of the department's regulation governing the research exemption, VR 630-10-92. After you have reviewed this regulation let the department's Technical Services Section, at P.O. Box 6-L, Richmond, Virginia 23282 know if you believe that any of the Taxpayer's research activities qualify for this exemption.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner