Tax Type
Retail Sales and Use Tax
Description
Food purchased by church for distribution to needy
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
11-21-1989
November 21, 1989
Re: Ruling Request/ Sales and Use Tax
Dear***************
This will reply to your letter dated October 13, 1989 in which you request a ruling on the tax-exempt status of tangible personal property purchased by churches.
FACTS
******** is requesting clarification of the Virginia sales and use tax laws with regard to purchases by churches of tangible personal property for consumption both on and off the premises of public church buildings. More specifically, the Center wishes to address food purchases for distribution to the poor and the homeless and supplies purchased for donation to food banks.
RULING
Virginia Code §58.1-608(8)(b) provides an exemption from the sales and use tax for tangible personal property purchased by churches organized not for profit for use in the public church buildings used in carrying out the work of the church and its related ministries. As such purchases of food to be served to homeless persons within church buildings would qualify for the exemption.
While the church exemption is generally limited to items used in public church buildings, the statute provides an exception for gifts for distribution outside the public church building. Therefore, gifts of food distributed to the poor and homeless would also qualify for the exemption.
Finally, Virginia Code §58.1-608(8)(i) provides an exemption for food and the tangible personal property purchased for donation to a nonprofit food bank "organized exclusively for the distribution of food to infants, the ill, or the needy."
If you have any further questions, please contact the department
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner