85-195 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Tax exempt corporation operating a public park

Topic

Exemptions

Date Issued

10-15-1985

October 15, 1985

Dear ****

This will reply to your letter of September 19, 1985, requesting a ruling on the applicability of the sales and use tax to the * * * (Taxpayer).

FACTS

Taxpayer is exempt from income taxation under Sec. 501(c)(3) of the Internal Revenue Code, and is organized, according to its articles of incorporation, for the purpose of providing a public park and botanical garden, the cultivation and study of plants, and the advancement of the fields of botanical science and horticulture. To attain these objectives, taxpayer is further organized to establish a library of botany and horticulture, to publish books and periodicals relating to such fields, and to provide generally for the entertainment, recreation and education of the public.

RULING

Sec. 58.1-608(55) of the Virginia Code exempts from sales and use tax:

Tangible personal property purchased for the use or consumption of a nonstock corporation, exempt from taxation under Sec. 501(c)(3) of the Internal Revenue Code, whose principal activity is conducted on real property owned by any city in the Commonwealth, organized exclusively for the purpose of operating, managing, promoting and improving a public park and museum for recreational and educational purposes (Emphasis added).

While taxpayer in the present case has amply demonstrated that it is organized for the purpose of operating and improving a public park, it has not demonstrated that it is also organized for the purpose of operating a museum, as required by the code section cited above.

Therefore, in the absence of any specific exemption in the code to the contrary, I find no basis for granting an exemption in this case.

Please let me know if you have any further questions.

W. H. Forst
Tax Commissioner

Rulings of the Tax Commissioner