Tax Type
Retail Sales and Use Tax
Description
Nonprofit organizations; Tangible personal property purchased for organizations
Topic
Taxability of Persons and Transactions
Date Issued
11-27-1995
November 27. 1995
Re: Request for Ruling: Retail Sales and Use Tax
Dear****************:
This will reply to your letter of October 10, 1995, in which you request a ruling on the application of the retail sales and use tax to purchases made by********** ("the Taxpayer").
FACTS
The Taxpayer is a nonprofit organization exempt from federal taxation under § 501(c)(3) of the Internal Revenue Code. The Taxpayer's primary purpose as stated in its bylaws is to (i) further the welfare of the***********community (ii) further the philanthropic, social, cultural, educational and religious needs of Jewish and non-Jewish organizations; and (iii) provide leadership in support of and in response to issues of concern.
RULING
Code of Virginia § 58.1-609.9 (12) provides an exemption from the retail sales and use tax for:
-
- From July 1, 1995, through June 30, 1999, tangible personal property purchased for use or consumption by a nonprofit corporation which is exempt from taxation under § 501 (c)(3) of the Internal Revenue Code and which is organized under the laws of the Commonwealth primarily for the purpose of (i) promoting the best interests and welfare of the Jewish community; (ii) enriching and furthering an appreciation of the spiritual, cultural, and ethical heritages and values of Judaism as they apply to the Jewish way of life in America; and (iii) promoting fellowship, harmony, and rapport among Americans of the Jewish faith and among all citizens of the community at large.
Based upon the information provided, the Taxpayer satisfies the requirements under the statue and qualifies for the exemption. The Taxpayer should provide its suppliers with a copy of this letter to make purchases exempt of the tax. Please note that this exemption, scheduled to expire June 30, 1999, applies only to tangible personal property purchased or leased for use and consumption by the Taxpayer. The exemption does not extend to purchases of meals and lodging.
If you have and questions concerning this letter, you may contact ***********at************.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10359T
Rulings of the Tax Commissioner