89-296 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Purchases by voluntary health organization

Topic

Exemptions

Taxability of Persons and Transactions

Date Issued

10-02-1989

October 2, 1989

Re: Request for Ruling: Sales and Use Tax

Dear******************

This will reply to your letter of March 29, 1989, in which you wished to determine the application of the sales and use tax to your organization.

Va. Code §58.1-608(7)(h) provides an exemption from the tax for:

- Tangible personal property purchased by a voluntary health organization exempt from taxation under §501(c)(3) of the Internal Revenue code and organized exclusively for the purpose of providing direct therapeutic and rehabilitative services, such as speech therapy, physical therapy, and camping and recreational activities to the children and adults of the Commonwealth regardless of the nature of their disease or socioeconomic position.

Based on the facts presented, your organization qualifies for the above exemption. It may make purchases or leases of tangible personal property exempt from the tax by providing its vendors with a copy of this letter. It should be noted, however, that the exemption does not apply to the purchase of meals and lodging since these purchases are used or consumed by the individuals who receive them and not by the organization itself (see the enclosed ruling of May 27, 1988).

Sincerely,

W. H. Forst
Tax Commissioner

Rulings of the Tax Commissioner