Tax Type
Retail Sales and Use Tax
Description
Nonprofit organizations, Purchases by nonprofit organization for own use
Topic
Taxability of Persons and Transactions
Date Issued
09-12-1995
September 12, 1995
Re: Request for Ruling: Retail Sales and Use Tax
Dear********************
This will reply to your letter of August 8, 1995 in which you request a ruling on the application of the retail sales and use tax to purchases made by********** (the "Taxpayer").
Code of Virginia § 58.1-609.8(32) provides an exemption from the retail sales and use tax for:
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- tangible personal property purchased for use or consumption by organizations exempt from taxation under § 501(c)(3) of the Internal Revenue Code (i) which are local chapters of a nonprofit national volunteer organization with chapters in at least fifteen states that was founded in the Commonwealth prior to 1950 and is exempt from taxation under § 501(c)(3) of the Internal Revenue Code and (ii) whose purposes are to improve their communities through public works, fund raisers, and donations to other community groups.
- tangible personal property purchased for use or consumption by organizations exempt from taxation under § 501(c)(3) of the Internal Revenue Code (i) which are local chapters of a nonprofit national volunteer organization with chapters in at least fifteen states that was founded in the Commonwealth prior to 1950 and is exempt from taxation under § 501(c)(3) of the Internal Revenue Code and (ii) whose purposes are to improve their communities through public works, fund raisers, and donations to other community groups.
Based on the information provided, the Taxpayer is a nonprofit group under its parent corporation, . Both the parent corporation and the Taxpayer are exempt from taxation under § 501(c)(3) of the Internal Revenue Code and are organized for the purposes specified in the exemption. Therefore, the Taxpayer qualifies for the exemption.
Please note that the scope of the exemption is limited to Purchases made by the Taxpayer for its own use or consumption. The Taxpayer may present a copy of this letter to its vendors to make purchases exempt of the tax.
If you have any questions, or if the department can be of additional assistance, you may contact ***********.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10104F
Rulings of the Tax Commissioner