Tax Type
Retail Sales and Use Tax
Description
Virginia Retail Sales and Use Tax Regulation 1-47
Topic
Reports
Date Issued
05-01-1984
May 1, 1984
Virginia Retail Sales and Use Tax Regulation 1-47
SUBJECT: Hospitals and nursing homes
EFFECTIVE DATE: November 15, 1983. Under the authority of Virginia Code § 58-48.6(B), this regulation is retroactive
EXPIRATION DATE: N/A
SUPERCEDES:
This regulation supercedes § 1-47 of the Virginia Retail Sales and Use Tax Regulations published January 1, 1979.
REFERENCE:
1. § 32.1-123, Code of Virginia
2. § 58-441.2(f), Code of Virginia
3. § 58-441.6(a), Code of Virginia
4. § 53-441.6(t), Code of Virginia
5. § 63.1-17A, Code of Virginia
AUTHORITY:
1. § 58-48.6, Code of Virginia
SCOPE:
Applicable to all hospitals, nursing homes, homes for adults, clinics, hospital cooperatives, and health maintenance organizations.
PURPOSE:
This regulation nets forth the sales and use talc application to hospitals, nursing homes, homes for adults, clinics, hospital cooperatives, and health maintenance organizations.
REGULATION:
§ 1-47. Hospitals and nursing homes. (a) Hospitals and nursing homes conducted for profit. A hospital or nursing home is primarily engaged is the business of selling services and is a user or consumer of all tangible personal property purchased for use or consumption in connection with its operations. Each is required to pay the tax to its vendor at the time of purchase.
(b) Hospitals and licensed nursing homes conducted not for profit. The tax does not apply to sales of tangible personal property to such hospitals or licensed nursing homes, for use or consumption by them, and paid for out of their own funds.
(g) Health maintenance organizations (HMO's). Effective July 1, 1982, the tax does not apply to sales of tangible personal property to health maintenance organizations (HMO's) conducted not for profit.
For sales of medicines, drugs and certain other enumerated items of tangible personal property sold on prescriptions of licensed physicians or dentists, see § 1-65. Section revised 7/69; 1/79; 5/84.
Rulings of the Tax Commissioner