Tax Type
Retail Sales and Use Tax
Description
Nonprofit volunteer organization; Exemption qualification
Topic
Exemptions
Date Issued
10-23-1995
October 23, 1995
Re: Request for Ruling: Retail Sales and Use Tax
Dear****************:
This will reply to your letter of October 11, 1995, in which you request a ruling on the application of the sales and use tax to purchases made by*********** (the "Taxpayer").
Code of Virginia § 58.1-609.4(16) provides an exemption from the retail sales and use tax for:
-
- tangible personal property purchased for use or consumption by a nonprofit volunteer organization which is exempt from taxation under § 501 (c)(3) of the Internal Revenue Code and which is organized exclusively for the purpose of raising funds for grant aid to any state, county or municipal library open to the public within the boundaries of the Eighth Planning District established pursuant to § 15.1-1403.
- tangible personal property purchased for use or consumption by a nonprofit volunteer organization which is exempt from taxation under § 501 (c)(3) of the Internal Revenue Code and which is organized exclusively for the purpose of raising funds for grant aid to any state, county or municipal library open to the public within the boundaries of the Eighth Planning District established pursuant to § 15.1-1403.
Based on the information provided, the Taxpayer is a nonprofit volunteer organization exempt from taxation under § 501(c)(3) of the Internal Revenue Code. The Taxpayer is organized exclusively for the purpose set forth in the exemption, and the libraries it serves are located within the Eighth Planning District. Therefore, the Taxpayer satisfies all the requirements under the statute and 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********at*************.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10369F
Rulings of the Tax Commissioner