Tax Type
Retail Sales and Use Tax
Description
Nonprofit organizations, private schools, and churches; Athletic programs for youth
Topic
Taxability of Persons and Transactions
Date Issued
09-26-1996
September 26, 1996
Re: Request for Ruling: Retail Sales and Use Tax
Dear***************
The Division of Legislative Services forwarded to the Department of Taxation an inquiry regarding the eligibility of the ******* (the "Taxpayer") for a sales and use tax exemption.
Code of Virginia § 58.1-609.8(11) provides an exemption from the retail sales and use tax for:
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- tangible personal property purchased for use or consumption by or sold by a nonstock, nonprofit charitable organization, exempt from taxation under § 501 (c)(3) of the Internal Revenue Code and from local real estate taxation, which is organized exclusively to foster, sponsor and promote physical education, athletic programs and contests for youths in the Commonwealth.
Based on the information provided, the Taxpayer may qualify for this exemption. The Taxpayer is exempt from taxation under § 501(c)(3) of the Internal Revenue Code and from local real estate taxation. It is not known, however, if the Taxpayer is a nonstock corporation. If the Taxpayer is a nonstock corporation, it qualifies for the exemption under § 58.1-609.8(11), as the remaining criteria for exemption are satisfied. Qualification under this exemption entitles the Taxpayer to make purchases and sales of tangible personal property exempt of the tax.
Code of Virginia § 58.1-609.8(35) provides an exemption from the sales and use tax for tangible personal property purchased for use or consumption by an organization exempt from taxation under § 501 (c)(3) of the Internal Revenue Code and organized and operated exclusively to foster, sponsor and promote sportsmanship, recreation, and health through athletic programs and contests for youths within the boundaries of the Fifteenth Planning District (Richmond Regional) established pursuant to § 15.1-1403.
The information provided indicates the Taxpayer is located within the boundaries of the Fifteenth Planning District and satisfies the other criteria of the statute. Accordingly, the Taxpayer qualifies for this exemption.
Please note that the scope of this exemption is limited to tangible personal property purchased 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 can provide documentation indicating that the Taxpayer is a nonstock corporation, the department will issue a letter of exemption for purchases and sales under § 58.1-609.8(11). Please send the documentation to **** , Office of Tax Policy, Department of Taxation, P. O. Box 1880, Richmond, Virginia 23218-1880. Please contact **** at **** if you have any questions.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/11615F
Rulings of the Tax Commissioner