Tax Type
Retail Sales and Use Tax
Description
Nonprofit organizations, booster club
Topic
Taxability of Persons and Transactions
Date Issued
09-25-1997
September 25, 1997
Re: Request for Ruling: Retail Sales and Use Tax
Dear****************
This is in response to your letter of September 8, 1997, regarding the application of the sales tax to the purchase of school equipment. At issue in this case are purchases of athletic uniforms by a high school's athletic booster club.
Code of Virginia § 58.1-609.4(8) provides an exemption from the sales and use tax for:
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- Tangible personal property purchased for use, consumption, or sale at retail by a nonprofit elementary or secondary school, or Parent Teacher Association or other group associated with a nonprofit elementary or secondary school for use in fund-raising activities, the net proceeds (gross receipts less direct expenses) of which are contributed directly to the school or used to purchase certified school equipment, and certified school equipment purchased by such groups for contribution directly to the school. For purposes of this subdivision, "certified school equipment" means equipment for which the Parent Teacher Association or other group has received certification from the school that it will accept a donation of equipment. (Emphasis added)
Accordingly, purchases of school athletic uniforms by an athletic booster club are exempt from the tax provided that: (1) the school is a nonprofit private or public elementary or secondary school; (2) the club is affiliated with the school; and (3) the club has received certification that the school will accept a donation of the equipment.
The enclosed Public Document 86-256 (12/29/86) indicates that "certification from the school" means a written certification signed by the school principal or assistant principal that the school will accept a donation of the equipment. The club would make its exempt purchases by providing its vendors with a fully completed Certificate of Exemption, Form ST-13, and a copy of the school's certification.
In addition to Public Document 86-256, I have enclosed other determinations issued by the Tax Commissioner which discuss the exemptions available to nonprofit elementary and secondary schools.
I hope that this information addresses your concerns. Please contact ***** in the department's Office of Tax Policy at **** if you have additional questions.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12954I
Rulings of the Tax Commissioner