Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Exemptions strictly construed
Topic
Exemptions
Date Issued
12-21-1993
December 21, 1993
Re: §58.1-1821 Application: Retail Sales & Use Tax
Dear********************
This will follow up with your letter of April 7, 1993 seeking reconsideration of my determination to your organization, P.D. 9351 (3/5/93) and to the subsequent meeting with members of my Office of Tax Policy staff on August 24, 1993.
I have reviewed the legislative history behind the enactment of the sales and use tax exemptions provided in subdivision 8 of Va. Code §58.1-609.9 (formerly §58.1-608(A)(9)(h)) and subdivision 14 of Va. Code §58.1-609.4 (formerly §58.1-608(A)(4)(m)), my prior determination, and the additional information provided during the meeting. However, I continue to find no basis for revising my prior determination.
As explained in P.D. 93-51, while the Taxpayer offers programs for children, its events are not offered on a regular basis as they are at a museum which is geared especially for children and as envisioned by the exemption in subdivision 8 of Va. Code §58.1609.9. Its events, rather are generally held once a year. Furthermore, since the Taxpayer's center itself does not offer classes in the arts and house a continuous series of exhibits it does not meet the requirements of subdivision 14 of Va. Code §58.1-609.4
While I continue to find no basis to abate the assessment, in light of the information presented during the meeting regarding the Taxpayer's financial condition, I will agree to have someone in the****************District Office meet with the Taxpayer to determine whether an installment payment plan is appropriate in this case. Someone from that office will be contacting you shortly.
Sincerely.
W. H. Forst
Tax Commissioner
OTP/7263H
Related Documents
Rulings of the Tax Commissioner