Tax Type
Retail Sales and Use Tax
Description
Nonprofit organizations, private schools, and churches; Event sponsored by canine organization
Topic
Taxability of Persons and Transactions
Date Issued
05-24-1996
May 24, 1996
Re: Request for Ruling: Retail Sales and Use Tax
Dear**************
This is in reply to your letter of April 4, 1996, in which you seek exemption from the retail sales and use tax for the ******** (the "Taxpayer").
FACTS
The Taxpayer is a nonprofit educational association which assists law enforcement agencies that utilize canines in the prevention and detection of crime. The Taxpayer is exempt from federal taxation under § 501(c)(6) of the Internal Revenue Code.
The Taxpayer will sponsor a national event for ******* . While the field exercises for this event will take place in Washington, D.C., seminars, lodging of the officers, and other activities will take place at a Virginia hotel. The Taxpayer requests a ruling as to whether it will qualify for exemption from the Virginia retail sales and use tax while residing at the Virginia hotel.
RULING
There is no general exemption from the retail sales and use tax for nonprofit organizations. The only exemptions from the tax are set out in Code of Virginia §§ 58.1--609.1 through 58.1-609.10 (copy enclosed). The Virginia courts have consistently required strict construction of these exemptions, i.e., where there is any doubt as to the application of an exemption, the doubt is resolved against the one claiming the exemption.
Based on a review of the Articles of Incorporation and the Taxpayer's by-laws, the Taxpayer does not qualify for any of the educational exemptions in § 58.1-609.4. The Taxpayer also does not qualify for the exemption under § 58.1-609.8(4), which exempts organizations promoting the humane care of animals. While I am mindful of the worthwhile purpose that the Taxpayer's event will serve, absent a statutory exemption that would allow the Taxpayer to make purchases exempt of the tax, the department has no authority to grant such an exemption. The Taxpayer, therefore, should pay the tax on all purchases of tangible personal property and lodging accommodations in Virginia in September.
If you have any questions concerning this matter, you may contact ***** at ***** .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/11103J
Rulings of the Tax Commissioner