Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization promoting the arts and artist
Topic
Exemptions
Property Subject to Tax
Date Issued
12-16-1991
December 16, 1991
Re: Request for Ruling: Sales and Use Tax
Dear********************
This is in reply to your memorandum of December 12, 1991 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 organized to foster and furnish activities and programs which promote the arts and artists of the Shenandoah Valley region. You seek an exemption to allow the Taxpayer to purchase items exempt from the Virginia retail sales and use tax
RULING
There is no general exemption form the Virginia retail sales and use tax for nonprofit organizations [See Virginia Regulation (VR) 630-10-741. The only exemptions from the tax are set out in Va. Code §58.1-608 . 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 tax to the retailer on all purchases of tangible personal property if the retailer is registered to collect the tax. If the retailer is not registered to collect the tax, the Taxpayer must report and pay the use tax on a Consumer Use Tax Return, Form ST-7.
If I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
TPD/5811E
Rulings of the Tax Commissioner