Tax Type
Retail Sales and Use Tax
Description
Applicability to federal government purchases
Topic
Exemptions
Date Issued
04-30-1985
April 30, 1985
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of November 20, 1984, to our ********** District Office in which you submit a request for a ruling on the applicability of the sales and use tax to food purchased by the ***** for a banquet.
The ***** enacted by Congress as Public Law *** provides in part:
It is hereby declared that the creation of the Authority and the carrying out of the corporate purposes of the Authority is in all respects for the benefit of the people of the signatory states and is for a public purpose and the Authority and the Board will be performing an essential governmental function, including, without limitation, proprietary, governmental and other functions, in the exercise of the powers conferred by this Title. Accordingly, the Authority and the Board shall not be required to pay taxes or assessments upon any of the property acquired by it or under its jurisdiction, control, possession or supervision or upon its activities in the operation and maintenance of any transit facilities or upon any revenues therefrom and the property and income derived therefrom shall be exempt from all federal, State, District of Columbia, municipal and local taxation. This exemption shall include, without limitation, all motor vehicle license fees, sales taxes and motor fuel taxes.
Under the provisions of the above law, I must conclude that food purchased by the ***** is exempt from the sale and use tax.
It should be noted, however, that this ruling applies only to purchases by that Authority and that an exemption is deemed to exist only because of the specific wording of the federal law. It should also be noted that an exemption does not exist for employees of the unless purchases by such employees are paid for directly by the Authority, by means of an Authority credit card, check or purchase order.
A copy of Section 630-10-45 of the Virginia Retail Sales and Use Tax Regulations is enclosed. This regulation explains the exemptions generally available for purchases by governmental bodies.
Sincerely,
W. H. Forst
Tax Commissioner
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of November 20, 1984, to our ********** District Office in which you submit a request for a ruling on the applicability of the sales and use tax to food purchased by the ***** for a banquet.
The ***** enacted by Congress as Public Law *** provides in part:
It is hereby declared that the creation of the Authority and the carrying out of the corporate purposes of the Authority is in all respects for the benefit of the people of the signatory states and is for a public purpose and the Authority and the Board will be performing an essential governmental function, including, without limitation, proprietary, governmental and other functions, in the exercise of the powers conferred by this Title. Accordingly, the Authority and the Board shall not be required to pay taxes or assessments upon any of the property acquired by it or under its jurisdiction, control, possession or supervision or upon its activities in the operation and maintenance of any transit facilities or upon any revenues therefrom and the property and income derived therefrom shall be exempt from all federal, State, District of Columbia, municipal and local taxation. This exemption shall include, without limitation, all motor vehicle license fees, sales taxes and motor fuel taxes.
Under the provisions of the above law, I must conclude that food purchased by the ***** is exempt from the sale and use tax.
It should be noted, however, that this ruling applies only to purchases by that Authority and that an exemption is deemed to exist only because of the specific wording of the federal law. It should also be noted that an exemption does not exist for employees of the unless purchases by such employees are paid for directly by the Authority, by means of an Authority credit card, check or purchase order.
A copy of Section 630-10-45 of the Virginia Retail Sales and Use Tax Regulations is enclosed. This regulation explains the exemptions generally available for purchases by governmental bodies.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner