Tax Type
Retail Sales and Use Tax
Description
Institutions of learning; Educational program for sheriffs
Topic
Exemptions
Date Issued
02-14-1985
- February 14, 1985
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of November 12, 1984 requesting a ruling on the applicability of the sales and use tax to the *****.
FACTS
*****, a 501(C)(3) organization, was incorporated in the District of Columbia in 1977 in affiliation with the University of ***** for the purpose of conducting and sponsoring an educational program known as the
***** presently in association with the University (hereinafter the University), provides an executive program for County and City Sheriffs, Undersheriffs, and Chief Deputies, throughout the United States. The objective of the ***** as stated in its agreement with the University, is "to improve the management skills and practices of sheriffs through instruction in contemporary management techniques, discussion of legal issues in law enforcement management, and assessment of personnel management traits." Students who satisfactorily complete a two week course of study with 65 hours of classroom participation and a required thesis, are awarded a certificate and earn 6.5 continuing education credits which are equivalent to one-half to one college level credit.
All of the courses conducted by the ***** are taught by professionally trained faculty in a classroom setting. To date there have been approximately 1,293 graduates of the Institute, with about 200 participating each year.
RULING
Section 58.1-608(23) exempts from sales and use taxation, tangible personal property used or consumed "by a college or other institution of learning ... provided such college [or] institution of learning is not conducted for profit.
Section 630-10-96(A)(1) of the Virginia Sales and Use Tax Regulations requires that to qualify as an "institution of learning," an organization must be similar to a college, in that it must:
a.) employ a professionally trained faculty,
b.) enroll and graduate students on the basis of academic achievement,
c.) prescribe courses of study, and
d.) provide instruction at regular intervals over a reasonable period of time.
Although the ***** may reasonably argue that their staff constitutes a professionally trained faculty, it does not satisfy the remaining three requirements. The program participants are not "graduated" on the basis of academic achievement. Although a certificate may be awarded to participants upon completion of the sessions, there is little indication that receipt of the certificate is contingent upon much more than attendance at the sessions. Nor does the requirement of a written thesis, prior to receipt of a certificate, of itself qualify as "graduation on the basis of academic achievement."
Similarly, the sessions which are offered as part of the program, do not qualify as prescribed courses of study since each is self contained, deals with one subject area, and is targeted to a specific functional area or problem. Finally, the sessions offered, ranging from a minimum of 32 to a maximum of 65 hours, are not of sufficient duration to qualify as "instruction over a reasonable period of time.
Therefore, I find no basis for granting an exemption from the sales and use tax to the *****. If you have any questions regarding this matter, please let me know.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner