Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization providing volunteers to assist victims of child abuse
Topic
Taxability of Persons and Transactions
Date Issued
03-02-1999
- March 2, 1999
Re: Request for Ruling: Retail Sales and Use Tax
Dear ***********
This is in response to your letter of October 21, 1998, in which you request a ruling regarding the application of the sales and use tax to ********** (the "Taxpayer").
FACTS
The Taxpayer is a nonprofit organization exempt from taxation under § 501 (c)(3) of the Internal Revenue Code. The Taxpayer's purpose is to provide court-appointed volunteers to act as advocates for children who are the subject of judicial proceedings involving allegations that the child is abused, neglected, in need of services, or in need of supervision. You question whether the Taxpayer qualifies for exemption from the sales and use tax under Code of Virginia § 58.1-609.8(37).
RULING
Code of Virginia § 58.1-609.8(37) provides an exemption for tangible personal property purchased by an organization exempt from taxation under § 501 (c)(3) of the Internal Revenue Code and organized exclusively to provide a voice in court for abused and neglected children through volunteer court-appointed special advocates. The exemption is effective for the period July 1, 1995, through June 30, 1999.
Based on a review of the Taxpayer's Articles of Incorporation and the program information provided, the Taxpayer meets the criteria set forth in the statute and qualifies for the exemption. The exemption applies to the Taxpayer's purchases of tangible personal property for use in its operations. The exemption does not apply to purchases of meals or hotel accommodations as these constitute taxable services. In order to make purchases exempt of the tax, the Taxpayer should present a copy of this letter to its vendors.
Currently, there is legislation pending before the 1999 Session of the Virginia General Assembly that would extend the effective date of the exemption to June 30, 2000. If the legislation is enacted into law, the Taxpayer will receive an updated exemption letter from the department prior to June 30, 1999.
I hope this responds to your inquiry. If you have additional questions, please contact ******** in the Office of Tax Policy at **************.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/18021J
Rulings of the Tax Commissioner