Tax Type
Retail Sales and Use Tax
Description
Nonprofit operating programs for people with HIV infection/AIDS
Topic
Exemptions
Date Issued
08-29-1990
August 29, 1990
Re: Ruling Request/Sales and Use Tax
Dear ****
This will reply to your letter of June 21, 1990 seeking an exemption from the sales and use tax for the ***** (the "taxpayer" ).
FACTS
The taxpayer is a nonprofit organization which operates programs of social services for people with HIV infection/AIDS. The services provided include: (1) the operation of a transitional house for homeless adults with HIV disease; (2) emergency financial assistance to people with HIV disease for rent and utilities as well as medication, food, clothing and transportation; and (3) case management, social and psychological support services for people with HIV infection and their caregivers and information and referral to community based services. The taxpayer seeks an exemption from the sales and use tax under recently enacted Virginia Code §58.1-608(8)(q).
RULING
From July 1, 1990 through June 30, 1993, Virginia Code §58.1-608(8)(q), provides an exemption from the sales and use tax for:
-
- Tangible personal property purchased for use or consumption by a nonstock, nonprofit charitable corporation exempt from taxation under §501(c)(3) of the Internal Revenue Code and organized and operated to offer social services, including, but not limited to, transitional housing for homeless individuals, employment counseling, placement and referral services to persons in financial need, health-related assistance, child care for children whose parents are either employed or enrolled in job training programs, emergency assistance (including the provision of food) to persons in financial need who may face eviction or termination of utility services, and related social welfare activities.
- Tangible personal property purchased for use or consumption by a nonstock, nonprofit charitable corporation exempt from taxation under §501(c)(3) of the Internal Revenue Code and organized and operated to offer social services, including, but not limited to, transitional housing for homeless individuals, employment counseling, placement and referral services to persons in financial need, health-related assistance, child care for children whose parents are either employed or enrolled in job training programs, emergency assistance (including the provision of food) to persons in financial need who may face eviction or termination of utility services, and related social welfare activities.
In interpreting tax exemptions, the department is also bound by a long-standing rule of statutory construction which requires the strict construction of exemption statutes. Under this rule, if an exemption statute is susceptible to alternative constructions, one granting an exemption and the other denying it, the latter construction will be adopted. See Winchester TV Cable Co. v. State Tax Commissioner, 216 Va. 286, 217 S.E. 2d 885 (1975).
Accordingly, and mindful of the worthwhile purposes the taxpayer serves, since the taxpayer does not provide all of the services enumerated for the exemption, I cannot find that the taxpayer qualifies for the exemption.
Please let the department know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner