Tax Type
Retail Sales and Use Tax
Description
List of exemptions, Exceptions and exclusions
Topic
Exemptions
Date Issued
01-19-1999
- January 19, 1999
Dear *****
This will acknowledge receipt of the Request for Sales and Use Tax Exemption questionnaire and supplemental information submitted on behalf of *************** (the "Taxpayer"). The Taxpayer is requesting an exemption for its purchases of tangible personal property.
FACTS
The Taxpayer is a nonprofit organization exempt from federal income taxation under § 501 (c)(3) of the Internal Revenue Code. Based on the information provided, the Taxpayer's purpose is to find homes for homeless, indigent, or dependent poor children in Virginia, and other purposes incident thereto.
You ask if the Taxpayer qualifies for an existing retail sales and use tax exemption.
RULING
Code of Virginia § 58.1-609.8(33) provides an exemption from the retail sales and use tax for:
tangible personal property purchased for use or consumption by a nonprofit family service organization exempt from taxation under § 501 (c)(3) of the Internal Revenue Code and organized (i) to preserve, strengthen, and promote healthy family life, to prevent individual and family breakdown, and address other human service needs, (ii) to help solve the problems created by homelessness, substance abuse, dysfunctional families and cultural diversity through family and multicultural counseling, neighborhood development, college intern training, special foster care and housing services, (iii) to assist families in crisis, homeless youth and the elderly by providing a variety of social services such as services on behalf of children in their own homes, group programs for predelinquent and delinquent youths, individual and family counseling, family life education, and financial assistance and legal aid, or (iv) to provide services to families including professional counseling, home care aid, treatment for domestic violence, and casework services for older adults.
Based on a review of the Taxpayer's charter and other information, l find that the Taxpayer satisfies the criteria in Code of Virginia § 58.1-609.8(33)(i). Accordingly, the Taxpayer qualifies for the exemption.
Please note that the scope of this 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 § 58.1-609.8(33) 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 ******************.
Sincerely,
Danny M. Payne
Tax Commissioner
Rulings of the Tax Commissioner