Tax Type
Retail Sales and Use Tax
Description
Nonprofit Organizations, Private Schools, and Churches
Topic
Taxability of Persons and Transactions
Date Issued
03-03-1999
March 3, 1999
Re: Request for Ruling: Retail Sales and Use Tax
Dear*************
This is in reply to your recent letter in which you request a ruling regarding the availability of a retail sales and use tax exemption for ********** (the 'Taxpayer').
FACTS
The Taxpayer is a nonprofit organization exempt from income taxation pursuant to § 501(c)(3) of the Internal Revenue Code. The Taxpayer is organized for charitable and educational purposes, including the education of its members and the general public by advancing interest in and promoting gardening among amateurs, protection of Virginia's native trees, wildflowers and birds, conservation of natural resources, ***** restoration and preservation of historic gardens and adjoining access and ***** encouragement of civic planting.
You ask that the department issue a letter of exemption from the retail sales and use tax to the Taxpayer.
RULING
Code of Virginia § 58.1-609.8(97) provides an exemption from the retail sales and use tax for:
-
- tangible personal property purchased for use or consumption by a nonprofit organization which is exempt from federal income taxation pursuant to § 501(c)(3) of the Internal Revenue Code and is organized for the purposes of promoting gardening among amateurs; protecting the Commonwealth's native trees, wildflowers, and birds; encouraging conservation of our natural resources; promoting civic planting; encouraging roadside beautification; and assisting in the restoration and preservation of historic gardens in the Commonwealth.
- tangible personal property purchased for use or consumption by a nonprofit organization which is exempt from federal income taxation pursuant to § 501(c)(3) of the Internal Revenue Code and is organized for the purposes of promoting gardening among amateurs; protecting the Commonwealth's native trees, wildflowers, and birds; encouraging conservation of our natural resources; promoting civic planting; encouraging roadside beautification; and assisting in the restoration and preservation of historic gardens in the Commonwealth.
Please note that the scope of the exemption is limited to tangible personal property purchased by the Taxpayer for its own use or consumption. As verification of the Taxpayer's exempt status, a copy of this letter should be furnished to each vendor from whom exempt purchases are made. You will not receive a separate tax exempt number and such a number does not need to be furnished to your vendor in order to make purchases exempt of the tax.
The exemption is effective for the period July 1, 1998, through June 30, 1999. Legislation is currently being considered by the General Assembly to extend the sunset date of the exemption to June 30, 2000. If the exemption is extended, you will be notified by the department and issued a new exemption letter.
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
OTP/20564F
Rulings of the Tax Commissioner