Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Consortium of academic oceanographic institutions
Topic
Exemptions
Property Subject to Tax
Date Issued
07-22-1991
July 22, 1991
Re: Request for Ruling: Sales and Use Tax
Dear**************
This will reply to your letter of June 28, 1990 in which you request a ruling whether your organization qualifies for exemption from the sales and use tax.
FACTS
**************(the "Taxpayer"), a nonprofit organization exempt from income taxation under § 501(c)(3) of the Internal Revenue Code, is a consortium of United States academic oceanographic institutions established to combine their collective capabilities to enhance large oceanographic research projects. The Taxpayer acts as a coordinating body for its member institutions and the oceanographic community. The Taxpayer is also responsible for developing long range planning and implementation strategies for new satellite oceanography programs, and the development of strategies for use of operational products from ocean satellites. The Taxpayer is seeking a sales and use tax exemption for such things as lodging and meals when they hold conferences and meetings in the state of Virginia.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations (see Virginia Regulation (VR) § 630-10-74). The only exemptions from the tax are set out in Va. Code § 58.1-608 (copy enclosed). While I am mindful of the worthwhile purpose that 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, the Taxpayer is required to pay the Virginia sales and use tax on all purchases of tangible personal property, including lodging and meals consumed during conferences at Virginia hotels.
If you should have any further questions, please feel free to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner