Tax Type
Retail Sales and Use Tax
Description
Government transactions; Student computer purchases
Topic
Taxability of Persons and Transactions
Date Issued
08-25-1995
August 25, 1995
Re: Request for Ruling: Retail Sales and Use Tax
Dear***************:
This will reply to your memorandum of August 2, 1995 in which you request a ruling on the application of the sales and use tax to certain purchases by students.
Beginning this fall, your department will require incoming students to purchase a specified notebook computer and software package. Students are also required to purchase textbooks and a drafting kit. You ask if the purchase of the notebook computer and software package qualifies for the exemption which is available for required school textbooks.
Exemptions from the Virginia retail sales and use tax are set out in Code of Virginia §§ 58.1-609.1 through 58.1-609.13. The Virginia courts have consistently required strict construction of these exemptions i.e., where there is any doubt as to the application of an exemption, the doubt is resolved against the one claiming the exemption. See Golden Skillet Corporation v. Commonwealth. 214 Va. 276, 199 S.E.2d 511(1973).
Code of Virginia § 58.1-609.4(1) provides an exemption for school textbooks sold for use by students attending a college or other institution of learning not conducted for profit. The exemption is limited to textbooks required by the college or institution of learning; therefore, items such as personal computers are taxable. I have enclosed a copy of Public Document 84-86 (July 9, 1984), which explains the department's policy relating to the purchase of personal computers by students.
Enclosed is a questionnaire for legislative consideration of a sales and use tax exemption request and Tax Bulletin 94-13, which explains the procedure and information required. If you are interested in pursuing exemption legislation during the 1996 General Assembly session, the questionnaire should be completed and forwarded to the legislator who will sponsor the bill for exemption. The legislator must sign the questionnaire and submit it to the department by November 1, 1995.
If you have any questions regarding this matter, you make contact**********at *********.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10072F
Rulings of the Tax Commissioner