Tax Type
Retail Sales and Use Tax
Description
Nonprofit school nursery
Topic
Exemptions
Date Issued
11-29-1989
November 29, 1989
Re: Ruling Request/ Sales and Use Tax
Dear*****************
This will reply to your letter of August 24, 1989 seeking a sales and use tax exemption for *********(the "Taxpayer").
FACTS
The Taxpayer is a nonprofit elementary and secondary school for children in grades R through 9. The Taxpayer also provides a nursery school on its elementary and secondary school premises. You ask whether the Taxpayer qualifies for exemption from the sales and use tax on its purchases of equipment and supplies for its own use and consumption, such as chalkboards, playground equipment, etc.
RULING
Virginia Retail Sales and Use Tax Regulation (VR) 630-10-96 exempts from the sales and use tax tangible personal property sold to: "nonprofit schools, colleges and other institutions of learning for their use or consumption and paid for out of their funds."
Based on the information provided, the Taxpayer qualifies for tax exemption on purchases of tangible personal property for its own use and consumption in the operation of the elementary and secondary school. Moreover, since the Taxpayer's nursery school is operated as an integral part of its elementary and secondary school, items purchased for use and consumption in the operation of the nursery school also qualify for tax exemption. In order to purchase items tax exempt, the Taxpayer must provide its suppliers with a copy of certificate of exemption Form ST-13, copy enclosed, at the time of making such purchases.
The Taxpayer and certain groups associated directly with the Taxpayer may also qualify for the school fundraising exemption in Virginia Code §58.1-608(4)(h), copy enclosed. A detailed explanation of this exemption is provided in the enclosed November 3, 1986 ruling of the department. As indicated in the enclosed ruling, Form ST-13 must also be used when claiming this exemption.
Please let the department know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner