95-326 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Nonprofit organizations, Food and grocery items; HUD-approved meal plan

Topic

Taxability of Persons and Transactions

Date Issued

12-21-1995

December 21, 1995

Re: Request for Ruling: Retail Sales and Use Tax

Dear*****************:

This will reply to your letter of December 7, 1995, in which you request a ruling on the availability of a sales and use tax exemption for************(the "Taxpayer"), a nonprofit housing community for older persons.

Code of Virginia § 58.1-609.8(40) provides an exemption from the retail sales and use tax for:

- food, food products, and services sold to residents under a Department of Housing and Urban Development-approved meal plan by a nonprofit organization exempt from taxation under § 501 (c)(3) of the Internal Revenue Code and receiving federal grant assistance under the Department of Housing and Urban Development Section 8 programs.

Based on the information provided and a review of the Taxpayer's Articles of Incorporation, the Taxpayer is a nonprofit organization exempt from taxation under § 501(c)(3) of the Internal Revenue Code. The Taxpayer receives federal grant assistance under the Department of Housing and Urban Development (HUD) Section 8 program and has a HUD-approved meal plan. 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 food, food products and services sold to residents under a Hud-approved meal plan. Sales of food, food products and other tangible personal property to nonresidents of the housing community and sales of food and food products that are not part of a HUD-approved meal plan are subject to the tax.

If you have any questions regarding this matter, or if the department can be of additional assistance, please call *******at******************.

Sincerely,

Danny M. Payne
Tax Commissioner

OTP/10656F

Rulings of the Tax Commissioner