Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization for development of elderly independent living
Topic
Taxability of Persons and Transactions
Date Issued
10-25-1989
October 25, 1989
Re: Request for Ruling: Sales and Use Tax
Dear***********
This is in reply to your letter of July 28, 1989, in which you request a ruling on behalf of ******** ("The Taxpayer") as to whether it 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, is a housing development designed for independent living for the elderly with housing being the owner's primary service: meals and medical services are not provided. It receives federal rent subsidies and is owned by a non-profit. community-based organization which has contracted with the********** for management services. 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. The only exemptions from the tax are set out in Virginia Code §58.1-608 (copy enclosed). 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