Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Exemption criteria
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
08-03-1993
August 3, 1993
Re: Request for Ruling: Retail Sales and Use Tax
Dear****************
This will reply to your letter of June 30, 1993 in which you request a ruling whether your organization qualifies for exemption from the sales and use tax.
FACTS
**********(the "Taxpayer") is a nonprofit organization, exempt from federal income taxation under §501(c)(3) of the Internal Revenue Code. purpose is to establish, support, promote, operate and maintain a special collection and permanent museum exhibit chronicling the life and accomplishments of **********and his relationship to, and the history of, volunteer rescue squads.
RULING
There is no general exemption from the retail sales and use tax for nonprofit organizations. The only exemptions from the tax appear 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.
If I can be of further assistance, please contact the department.
Sincerely,
W. H. Frost
Tax Commissioner
OTP/7115F
Rulings of the Tax Commissioner