Bulletin Number
VTB 83-12
Tax Type
Retail Sales and Use Tax
Description
1983 Legislative Changes
Topic
Exemptions
Date Issued
06-01-1983
Virginia Department of Taxation
83-12
DATE: June 1, 1983 SUBJECT: Sales and Use Tax: 1983 Legislative Changes
The 1983 Session of the General Assembly enacted several bills which affect the sales and use tax. The purpose of this bulletin is to announce these changes. Five bills will become effective July 1, 1983 while two will become effective on July 1, 1984. Brief summaries of these bills are listed below under their appropriate effective date.
EFFECTIVE JULY 1, 1983:
Organizations Providing Housing and Assistance for Ill Children and Their Families.
§ 58-441.6 was amended to exempt from the sales and use tax purchases of non-medical tangible personal property by a nonprofit organization, organized exclusively for the purpose of providing housing and ancillary assistance to children suffering from leukemia and oncological diseases, other ill children, and the families of these children, during periods of medical treatment at any hospital in Virginia. (Chapter 384, House Bill 40).
Schools for Severely Handicapped Children and Young Adults
§ 58-441.6 was amended to exempt from the retail sales and use tax tangible personal property purchased by an organization organized exclusively for the purpose of operating a combination boarding and day school for severely physically handicapped children and young adults of Virginia. The organization must be a nonprofit, non-stock corporation, must not receive financial aid from Virginia or the federal government, and must not charge its pupils. (Chapter 184, House Bill 417).
Educational Institutions Providing Face-to-Face Experience in American Government
§ 58-441.6(t2) was added to exempt from the sales and use tax tangible personal property and services purchased by a nonprofit educational institution which: (1) admits regularly enrolled high school and college students; and (2) provides a face-to-face educational experience in American government which either leads to the successful completion of, U.S. history, civics, and problems of democracy, courses in high school or is acceptable for college or graduate school credit. Under prior law, such organizations were entitled to exemption only for tangible personal property purchased for their own use or consumption. (Chapter 100, House Bill 549).
Examination of Dealer Records
§ 58-441.38 was amended to prohibit the examination of any person's sales and use tax records for a period of more than three years unless there exists reasonable evidence of fraud or reasonable cause to believe a return has not been filed as required by law. If evidence of fraud or failure to file a return exists, a six year examination may be performed. (Chapter 104, House Bill 846).
Organizations Providing Direct Therapeutic and Rehabilitative Services
§ 58-441.6 was amended to provide an exemption from the sales and use tax to voluntary organizations, which are exempt from taxation under § 501(c)(3) of the Internal Revenue Code, and organized exclusively for the purpose of providing direct therapeutic and rehabilitative services (such as speech therapy, physical therapy, and camping and recreational activities) to children and adults of the Commonwealth regardless of the nature of their disease or socioeconomic position. (Chapter 599, Senate Bill 262).
EFFECTIVE JULY 1, 1984.
Newspaper Inserts
§ 58-441.6(k) was amended to provide an exemption from the sales and use tax for advertising supplements and other printed matter ultimately distributed with or as part of a newspaper or other publication exempt from the sales and use tax under § 53-441.6(k). (Chapter 565, House Bill 669).
Churches
§ 58-441.6(gg) was amended to provide an exemption from the sales and use tax to certain nonprofit churches for tangible personal property used in the libraries, offices, meeting or counseling rooms and other rooms of public church buildings used to carry out the work of the church and its related ministries, including kindergartens, elementary and secondary schools. Under existing law, only tangible personal property used in the religious worship service or regular school of religious education qualifies for exemption (Chapter 557, House Bill 848).
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