89-69 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Criteria for church exemption

Topic

Exemptions

Date Issued

01-18-1989

January 18, 1989

Re: Request for Ruling: Retail Sales and Use Tax

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

This will reply to your letter dated October 21, 1988, in which you requested a ruling as to whether your client, ***************** ("The Church"), qualifies for exemption from sales and use tax under Virginia Code §58.1-608(38).

Virginia Code §58.1-608(38), copy enclosed, provides a limited exemption from the sales and use tax for:

- Tangible personal property, except property used in any form of recording and reproducing services, purchased by churches organized not for profit...which are exempt from taxation under §501(c)(3) of the Internal Revenue Code or...whose real property is exempt from local taxation pursuant to the provisions of §58.1-3606...for use...in religious worship services by a congregation or church membership....

Based on the purpose of the Church as set forth in the Articles of Incorporation and the other facts presented, I find that the Church qualifies for the exemption cited above. Note that this exemption generally applies only to tangible personal property purchased by the Church for use "in religious worship services by a church membership while meeting together in a single location, and... in libraries, offices, meeting or counseling rooms or other rooms in the public church buildings...." See enclosed copy of Virginia Retail Sales and Use Tax Regulation §630- l 0-22.l.

If we may be of further assistance, please contact the department.

Sincerely,

W. H. Forst
Tax Commissioner

Rulings of the Tax Commissioner