Retail Sales and Use Tax
Arts-in-education nonprofit organization
Taxability of Persons and Transactions
February 20, 1997
Re: Request for Ruling: Retail Sales and Use Tax
This is in reply to your letter of January 10, 1997, in which you request reconsideration of a ruling on the availability of a retail sales and use tax exemption for ********* (the "Taxpayer").
The Taxpayer is a nonprofit arts-in-education organization which brings professional musicians, dancers, actors, and storytellers into schools and youth organizations throughout Virginia. The Taxpayer is organized to: (1 ) stimulate interest and to promote the musical education of school-age children; (2) develop more appreciative musical audiences for the future; (3) encourage the formation and continuance of high quality music ensembles; and (4) perform all acts necessary for the proper and successful prosecution of the ultimate purposes for which the organization is created.
The department previously ruled that the Taxpayer did not qualify for the retail sales and use tax exemption provided in Code of Virginia § 58.1-609.9(8), as there was no indication that the Taxpayer educates children about nature through museum exhibits. P.D. 96-332 (11/14/96). You have provided additional information and request reconsideration of the department's prior ruling.
Code of Virginia § 58.1-609.9(8) grants an exemption from the retail sales and use tax for "[t]angible personal property purchased for use or consumption by a nonprofit cultural organization, exempt from taxation under § 501(c)(3) of the Internal Revenue Code, which educates children about the arts, humanities and nature on a regular basis through museum exhibits, classes and performances."
Based on the additional information provided, the Taxpayer provides educational programs to children about the arts, humanities, and nature on a regular basis and satisfies all the other criteria in the statute. Accordingly, the Taxpayer qualifies for the exemption.
Please note that the scope of the 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 have any questions regarding this ruling, you may contact********** of*************the department's Office of Tax Policy at******************
Danny M. Payne