Tax Type
Retail Sales and Use Tax
Description
Youth organizations similar to Boy Scouts or Girl Scouts
Topic
Exemptions
Date Issued
03-18-1991
March 18, 1991
Re: Request for Ruling: Sales and Use Tax
Dear***************
This will reply to your letter of November 13, 1990 in which you submit additional information and request further consideration towards a sales and use tax exemption for the*************( the Taxpayer).
Va. Code §58.1-608(8)(n) provides an exemption from sales and use tax for:
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- Tangible personal property purchased for use or consumption, or to be sold at retail, by any nonsectarian youth organization exempt from taxation under §501(c)(3) of the Internal Revenue Code which is organized for the purposes of the character development and citizenship training of its members using the methods now in common use by Girl Scout or Boy Scout organizations in Virginia.
Under principles established by the Courts, taxation is the rule and exemption is the exception. Therefore, exemptions from the sales and use tax are strictly construed.
To qualify for the exemption, an organization must (I) be a nonprofit nonsectarian youth organization, (ii) be organized for the character development and citizenship training of its members, and (iii) use the methods now in common use by Girl Scout and Boy Scout organizations in Virginia.
Based upon our review of the additional information you have provided, I find the Taxpayer does meet all of the necessary criteria for exemption under Va. Code §58.1-608(8)(n). Please note that this exemption applies only to tangible personal property purchased for use and consumption by the Taxpayer.
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