Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Strict qualification for exemption
Topic
Exemptions
Date Issued
12-03-1993
December 3, 1993
Re: Request for Ruling: Retail Sales & Use Tax
Dear*************
This will reply to your letter of October 21, 1993 seeking a ruling whether your client, the ********** (the "Taxpayer), qualifies for an exemption from the Virginia retail sales and use tax.
FACTS
The Taxpayer, a nonprofit organization exempt from income tax under IRC §501(c)(3), is an educational association of student members preparing for careers in business. The Taxpayer has three divisions, one for high school students, one for postsecondary students and a professional division for others who would like to affiliate with the Taxpayer. It provides innovative leadership development programs to bring business and education together in a positive working relationship. You seek an exemption from the sales and use tax for the Taxpayer.
RULING
Subdivision 12 of Va. Code §58.1-609.4 provides an exemption from the sales and use tax for:
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- tangible personal property and services purchased for use by an organization exempt from taxation under §501(c)(3) of the Internal Revenue Code, which is organized and operated primarily for the purpose of encouraging participation in the free enterprise system through information programs directed to secondary schools and college students, college scholarship programs, and recognition of achievement in the American free enterprise system.
Based on the information provided, I find that your organization qualifies for the exemption cited above. You should note, however, that this exemption is effective for the period beginning July 1, 1990 through June 30, 1996, unless extended by the General Assembly.
The Taxpayer should provide its suppliers with a copy of this letter to obtain the exemption.
Sincerely,
W . H. Forst
Tax Commissioner
OTP/744lH
Rulings of the Tax Commissioner