Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization preventing cruelty to animals
Topic
Exemptions
Date Issued
07-29-1991
July 29, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear****************
This will reply to your letter of April 29, 1991 in which you request a ruling on the application of the Virginia retail sales and use tax on sales made by************* (the Taxpayer).
FACTS
The Taxpayer, a nonprofit organization exempt from income taxation under § 501(C) (3) of the Internal Revenue Code and incorporated under the laws of the Commonwealth, is organized to prevent cruelty to animals and promote humane care for animals within the Commonwealth. Additionally, the Taxpayer provides the services of spaying/neutering, hospitalization, and other related functions regarding animals. The Taxpayer sells items at a shop operated by the Taxpayer, flea markets, craft shows, and at bake sales, with the proceeds going to the actual operation of the organization. The Taxpayer requests an exemption from the collection of sales and use tax on tangible personal property sold by the Taxpayer at the above mentioned activities.
RULING
Va. Code § 58.1-608(8)(d) provides an exemption for tangible personal property " bought, sold, or used by Virginia Federation of Humane Societies or any chartered, not-for-profit organization incorporated under the laws of the Commonwealth and organized for the purposes of preventing cruelty to animals and promoting humane care of animals, when such property is used for the operation of such organization or the construction or maintenance of animal shelters."
Based on the purpose of your organization as outlined in your letter, I find that your organization qualifies for the exemption cited above. Please note that the exemption extends not only to tangible personal property sold by your organization, but to tangible personal property purchased and used as well, when the property is used in the operation of the organization or the construction or maintenance of the shelters.
In order to claim the exemption on tangible personal property purchased by the organization, your organization must provide its suppliers with a copy of the enclosed certificate of exemption (Form ST-13) at the time of making purchases.
If you have any questions regarding this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner