Tax Type
Corporation Income Tax
Description
Nonprofit organization; Determination of Exemption
Topic
Exemptions
Date Issued
03-10-2000
March 10, 2000
Re: Request for Ruling: Retail Sales and Use Tax
Dear ****
This is in reply to your letter of December 19, 1999, in which you request a retail sales and use tax exemption for ***** (the "Taxpayer"). I apologize for the delay in responding to your request.
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.
Based on a review of the Taxpayer's Articles of Incorporation and other information, I find that the Taxpayer satisfies the criteria in Code of Virginia § 58.1-609.8(97). Accordingly, the Taxpayer qualifies for the exemption, which is effective July 1, 1998, through June 30, 2001.
Please note that the scope of the exemption is limited to tangible personal property purchased by the Taxpayer for its own use or consumption. A copy of this letter should be furnished to each vendor from whom exempt purchases are made.
Virginia law now requires nonprofit organizations, except churches, exempt from the sales and use tax to submit to the Department of Taxation updated information relating specifically to the operation and administration of the organization. The initial filing is due July 1, 2000. A questionnaire, Request for Extension of Sales and Use Tax Exemption (copy enclosed) has been developed by the department for reporting the required information. I have also enclosed a copy of Tax Bulletin 99-9 regarding the new reporting requirement for nonprofit organizations. The law provides that failure to file a complete and timely questionnaire can result in the revocation of your organization's sales and use tax exemption.
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/26402C
Re: Request for Ruling: Retail Sales and Use Tax
Dear ****
This is in reply to your letter of December 19, 1999, in which you request a retail sales and use tax exemption for ***** (the "Taxpayer"). I apologize for the delay in responding to your request.
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.
Based on a review of the Taxpayer's Articles of Incorporation and other information, I find that the Taxpayer satisfies the criteria in Code of Virginia § 58.1-609.8(97). Accordingly, the Taxpayer qualifies for the exemption, which is effective July 1, 1998, through June 30, 2001.
Please note that the scope of the exemption is limited to tangible personal property purchased by the Taxpayer for its own use or consumption. A copy of this letter should be furnished to each vendor from whom exempt purchases are made.
Virginia law now requires nonprofit organizations, except churches, exempt from the sales and use tax to submit to the Department of Taxation updated information relating specifically to the operation and administration of the organization. The initial filing is due July 1, 2000. A questionnaire, Request for Extension of Sales and Use Tax Exemption (copy enclosed) has been developed by the department for reporting the required information. I have also enclosed a copy of Tax Bulletin 99-9 regarding the new reporting requirement for nonprofit organizations. The law provides that failure to file a complete and timely questionnaire can result in the revocation of your organization's sales and use tax exemption.
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/26402C
Rulings of the Tax Commissioner