Document Number
84-51
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.
    (c) Hospitals and nursing homes (conducted for profit and not for profit). When any hospital or nursing home, through any division or department, engages in selling tangible personal property, it must register as a dealer and collect and pay the tax.
      (d) Clinics. Unless a clinic is as integral part of a hospital conducted not for profit or is itself licensed as a hospital under the provisions of Virginia Code § 32.1-123 and conducted not for profit, sales to such a clinic are taxable.
        (e) Hospital cooperatives sad hospital corporations conducted not for profit. The tax does not apply to sales of tangible personal property to hospital cooperatives or hospital corporations conducted not for profit when organized and operated for the sole purpose of providing services exclusively to hospitals conducted not for profit.
          (f) Homes for adults conducted not for profit. The tax does not apply to sales of tangible personal property to homes for adults as defined by Virginia Code § 63.1-172A conducted not for profit. The tax applies to sales of tangible personal property to all other homes for adults.

          (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

          Last Updated 08/25/2014 16:46