Document Number
98-91
Tax Type
Retail Sales and Use Tax
Description
Nonprofit organizations, private schools, and churches; Youth athletic organization.
Topic
Taxability of Persons and Transactions
Date Issued
05-15-1998
May 15, 1998

Dear**********:


This is in reply to your fax transmission of April 24, 1998, in which you request a ruling regarding the availability of a retail sales and use tax exemption for ***** (the ``Taxpayer').

Code of Virginia Sec. 58.1-609.8(35) provides an exemption from the retail sales and use tax for:
    • tangible personal property purchased for use or consumption by an organization exempt from taxation under Sec. 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, established pursuant to Sec. 15.1-1403.

The Fifteenth Planning District (Richmond Regional) includes the counties of Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent, and Powhatan, and the City of Richmond.

Based on the information provided, the Taxpayer is exempt from federal income taxation under Sec. 501(c)(3) of the Internal Revenue Code. It sponsors and promotes athletic programs and contests for youths in the Fifteenth Planning District. 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 retail sales and use tax.

The exemption in Code of Virginia Sec. 58.1-609.8(35) was originally effective for the period July 1, 1995, through June 30, 1998. The 1998 General Assembly enacted legislation to extend the sunset date of the exemption to June 30, 1999.

If you have any questions regarding this matter, you may contact ***** of the department's Office of Tax Policy at *****.



Rulings of the Tax Commissioner

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