Tax Type
Retail Sales and Use Tax
Description
Nonprofit organizations, private schools, and churches; Educational corporation
Topic
Taxability of Persons and Transactions
Date Issued
04-21-1997
April 21, 1997
Re: Request for Ruling: Retail Sales and Use Tax
Dear**************************
This is in reply to your letter of March 17, 1997, in which you request a ruling on the application of the retail sales and use tax to purchases made by the*************** (the "Taxpayer").
The Taxpayer is an educational nonprofit corporation committed to helping people with inflammatory myopathies through a variety of programs. The programs include an educational newsletter, research updates, and awareness programs for physicians and members.
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 58.1-609.13. 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.
The only exemptions from the sales and use tax relating to disease education and prevention organizations are found in Code of Virginia § 58.1-609.8(20) [Heart Association], § 58.1-609.8(21) [Lung Association], § 58.1-609.8(22) [Diabetes Association], § 58.1-609.8(23) [Cancer Society], and § 58.1-609.8(51) [Multiple Sclerosis Societies of Virginia]. Based on the information provided, and under the doctrine of strict construction, none of the exemptions cited above would apply to your organization.
While I am mindful of the worthwhile purpose the Taxpayer serves, 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. Therefore, the Taxpayer is required to pay the tax to its vendors on all purchases of tangible personal property. If a vendor is not registered to collect the tax, the Taxpayer must report and pay use tax on a Consumer's Use Tax Return, Form ST-7.
If you have any questions regarding this matter, you may contact *********of the department's Office of Tax Policy at *********.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12334F
Rulings of the Tax Commissioner