Tax Type
Retail Sales and Use Tax
Description
Virginia Retail Sales and Use Tax Regulation 1-74
Topic
Reports
Date Issued
05-01-1984
May 1, 1984
Virginia Retail Sales and Use Tax Regulation 1-74
SUBJECT: Nonprofit organizations
EFFECTIVE DATE: November 15, 1983. Under the authority of Virginia Code §
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- 58-48.6(B), this regulation is retroactive.
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EXPIRATION DATE: N/A
SUPERSEDES:
This regulation supersedes § 1-74 of the Virginia Retail Sales and Use Tax Regulations published January 1, 1979.
REFERENCE:
1. § 58-441.2(f), Code of Virginia
2. § 58-441.2(g), Code of Virginia
3. § 58-441.3(b), Code of Virginia
4. § 58-441.6(gl), Code of Virginia
5. § 58-441.6(t), Code of Virginia
6. § 58-441.6(tl), Code of Virginia
7. § 58-441.6(v), Code of Virginia
8. § 58-441.6(ee), Code of Virginia
9. § 58-441.6(ii), Code of Virginia
10. § 58-441.6(mm), Code of Virginia
11. § 58.441.6(nn), Code of Virginia
12. § 58-441.6(oo), Code of Virginia
13. § 441.12, Code of Virginia
AUTHORITY:
1. § 58-48.6, Code of Virginia
SCOPE:
Applicable to all organizations conducted not for profit.
PURPOSE:
This regulation sets forth the sales and use tax application to all organizations conducted not for profit.
REGULATION:
§ 1-74. Nonprofit organizations. (a) Purchases. All tangible personal property purchased for use or consumption by religious, charitable, civic and other nonprofit organizations is taxable except:
(1) Tangible personal property for use or consumption by a college or other institution of learning conducted not for profit;
(2) Tangible personal property for use or consumption by, or purchased for donation to, a noncommercial educational telecommunications entity conducted not for profit;
(3) Tangible personal property for use or consumption by a volunteer fire department or volunteer rescue squad conducted not for profit, acid construction materials to be incorporated into realty when sold to and use by the organization, rather than a contractor, in construction, maintenance or repair or any property of such organization;
(4) Tangible personal property for use or consumption by hospital cooperatives or hospital corporations conducted not for profit that are organized and operated for the sole purpose of providing services exclusively to hospitals conducted not for profit;
(5) Historical documents, maps, rare books, and manuscripts acquired by a State historical society conducted not for profit provided such society maintains a research library open to the public without charge for research and educational purposes. (Only historical societies devoted to the study of the history of this state as a whole are entitled to exemption. The exemption is not applicable to local, regional, or national historical societies.);
(6) Tangible personal property for use or consumption at a national or international camping assembly within this state sponsored by a nonsectarian youth organization, provided all the following conditions are met: (a) the sponsoring organization is exempt from taxation under § 501(c)(3) of the Internal Revenue Code; (b) the camping assembly is for at least seven (7) continuous days; (c) the assembly has an attendance of more than 20,000; and (d) the tangible personal property is purchased by the sponsoring organization;
(7) Books and other reading materials for use by a nonprofit group organized solely to distribute such books and reading materials for school-age children.
(8) Tangible personal property sold or leased for use in nonprofit nutrition programs for the elderly qualifying under 42 U.S.C. § 303 (e) through 3030 (g), and amended, as administered by the Office of Aging of the Commonwealth of Virginia, and the food and food products sold under such programs to elderly persons. Effective July 1, 1982.
P. D. 84-55
(9) Tangible personal property bought, sold or used by Virginia Federation of Humane Societies or any other chartered non-profit organization incorporated under the laws of this state and organized for the purpose of preventing cruelty to animals and promoting humane care of animals, when such property is used for the operation of such organizations or the construction or maintenance of animal shelters. Effective July 1, 1982.
(10) Tangible personal, property purchased for use or consumption by a nonprofit museum of fine arts which is located on property owned by a city in Virginia and which receives more than half of its operating budget from appropriations by the city. Effective July 1, 1982.
(11) Tangible personal property purchased for use or consumption by an organization exclusively organized for the purpose of providing education, training, services to retarded citizens, provided that such organization receives more than half of its total funding from federal, state or local governments. Effective July 1, 1982.
If a supplier fails to collect the tax on any taxable purchases, the organization must report and pay the use tax on a Consumer's Use Tax Return, Form ST-7.
(b) Sales. If an organization conducted not for-profit regularly engages in selling tangible personal property, it is required to register as a dealer and collect and pay the tax on retail sales except that (1) tangible personal property sold by a noncommercial, educational telecommunications entity conducted not for profit; and (2) charges for gift wrapping services performed by a nonprofit organization are not subject to the tax.
If an organization is not regularly engaged in selling tangible personal, property and buys its merchandise from a dealer who is registered to collect the sales or use tax, the organization pays the tax to its supplier for payment to the state. If the supplier is not registered to collect the sales or use tax, the organization must report and pay the
tax on a Consumer's Use Tax Return, Form ST-7.
Purchases of religious educational materials and certain other tangible personal property by churches conducted not for profit are covered in § 1-22.1; sales of medicines, drugs and certain other items of tangible personal property by hospitals are covered in § 1-47; sales of school textbooks by schools conducted not for profit are covered in § 1-96. Section revised 7/69; 1/179; 8/82; 4/84.
Rulings of the Tax Commissioner