Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Service to disabled individuals
Topic
Exemptions
Property Subject to Tax
Date Issued
03-21-1991
March 21, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear*****************
This will reply to your letter of February 12, 1991 to**************regarding the applicability of the retail sales and use tax to purchases of tangible personal property by your organization (the "Taxpayer").
FACTS
The Taxpayer, a nonprofit organization exempt from income taxation pursuant to I.R.C. §501(c)(3), is organized to advocate, plan and develop programs and services that aid individuals with disabilities in reaching maximum personal independence. Its programs assure service to persons with disabilities and enhance the individuals' rights to seek fulfilled lives through the enhancement of qualify of life choices. Approximately 90 percent of its funding is from governmental sources.
You seek a ruling on the applicability of the sales and use tax to the Taxpayer.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations. 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 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, copy enclosed.
If I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner