Tax Type
Retail Sales and Use Tax
Description
Christian teen camp; Nonprofit organization exemption criteria
Topic
Exemptions
Property Subject to Tax
Date Issued
07-10-1991
July 10, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear ********************
This will reply to your letter of June 13, 1991 in which you request a ruling on the application of the Virginia sales and use tax on purchases made by**************(the Taxpayer).
FACTS
The Taxpayer is a nonprofit organization exempt from taxation under §501(C)(3) of the Internal Revenue Code, organized to provide a Christian experience in the form of a one week camp for teens from all denominations and backgrounds. During the camp, the participants learn carpentry skills and apply these skills as a team in providing repair work to homeowners who cannot afford and/or are physically unable to do the work themselves.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations. The only exemptions are set forth in Va. Code §58.1-608 (copy enclosed). While I am mindful of the worthwhile purpose the Taxpayer serves, absent a statutory exemption that would allow the Taxpayer to make purchases exempt from the tax, the department has no authority to grant such an exemption.
Therefore, based on the information submitted, the Taxpayer is required to pay the tax to its retailers on all purchases of tangible personal property. If a retailer is not registered to collect the tax, the Taxpayer must report and pay use tax on a Consumer Use Tax Return, Form ST-7.
However, Va. Code §58.1-608.1 (copy enclosed), authorizes a refund of sales taxes paid on certain building materials. Subsection B specifies:
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- "an organization exempt from taxation under §501(C)(3) of the Internal Revenue Code may apply for a refund of any sales and use tax paid on tangible personal property used to repair or rehabilitate homes owned and occupied by low-income persons who could not otherwise afford to finance the rehabilitation or repair of their homes."
Accordingly, the Taxpayer may claim a refund only for the tax paid on building materials and supplies actually used in the repair or rehabilitation of low income homes. In claiming this refund, the Taxpayer should provide the department with sales tax receipts and a letter certifying that the refund claimed is for items purchased for the above referenced purpose. The Taxpayer should direct any refund request to the department's office Services Division, Taxpayer Assistance Section, P.O. Box 6-L, Richmond, Virginia 23282.
If you have any further questions regarding this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner