Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Exemption qualification criteria
Topic
Exemptions
Date Issued
04-30-1993
April 30, 1993
Re: Request for Ruling: Retail Sales and Use Tax
Dear*************
This is in reply to your letter dated September 23, 1992, concerning whether **********(the ("Taxpayer") qualifies for exemption from the sales and use tax under Va. Code §58.1-608(A)(4)(m).
FACTS
The Taxpayer is a nonprofit organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code. It maintains a regional arts center which provides to adults, children and visitors of the Southwest Virginia area changing art exhibitions, arts education classes for the public and the school systems, and art education workshops. You are seeking a ruling on whether the Taxpayer is exempt from the Virginia retail sales and use tax on purchases of tangible personal property under Va. Code §58.1-608(A)(4)(m)
RULING
Va. Code §58.1-608(A)(4)(m) provides an exemption from retail sales and use tax for:
-
- From July 1, 1990, through June 30, 1996, tangible personal property purchased for use or consumption by a nonprofit organization exempt from taxation under §501 (c)(3) of the Internal Revenue Code and organized primarily for the purpose of operating an arts center offering a year-round schedule of art education classes for adults and children, a continuous series of exhibits focusing on twentieth century art, and sponsoring a wide range of seminars for the public at no or nominal charge.
Based upon the information provided, find that the Taxpayer qualifies under the above exemption. Please note that this exemption applies to tangible personal property purchased or leased for use and consumption by the Taxpayer. Additionally, this exemption is currently scheduled to expire on June 30, 1996.
If I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/6437N
Rulings of the Tax Commissioner