Tax Type
Retail Sales and Use Tax
Description
Church exemption; Construction materials
Topic
Exemptions
Property Subject to Tax
Date Issued
06-23-1986
June 23, 1986
Re: Request for Ruling/Sales and Use Tax
Dear ********************
This will reply to your letter of March 10, 1986 requesting an exemption from the sales and use tax for purchases of tangible personal property by *********** (taxpayer).
FACTS
Taxpayer is a nonprofit association organized under §501(c)(3) of the Internal Revenue Code for the purpose of forming a church, establishing a place of worship and providing food, shelter and clothing to people in need or who are lacking in physical, emotional or spiritual support.
In connection with its purposes, taxpayer often finds it necessary to purchase food and personal supplies for consumption by its people. Furthermore, as a result of a recent fire, taxpayer is now in the process of buying construction materials to restore its building.
Taxpayer requests a ruling that in making such purchases of food, supplies, construction materials and other items that it be granted an exemption from the sales tax as a nonprofit church.
RULING
§58.1-608(38) of the Virginia Code exempts from the retail sales and use tax:
-
- tangible personal property, except property used in any form of recording and reproducing services, purchased by churches organized not for profit and (i) which are exempt from taxation under §501(c)(3) of the Internal Revenue Code or (ii) whose real property is exempt from local taxation pursuant to the provisions of §58.1-3606, for use (i) in religious worship services by a congregation or church membership while meeting together in a single location, and (ii) in the libraries, of f ices, meeting or counseling rooms or other rooms in the public church buildings used in carrying out the work of the church and its related ministries, including kindergarten, elementary and secondary schools.
- tangible personal property, except property used in any form of recording and reproducing services, purchased by churches organized not for profit and (i) which are exempt from taxation under §501(c)(3) of the Internal Revenue Code or (ii) whose real property is exempt from local taxation pursuant to the provisions of §58.1-3606, for use (i) in religious worship services by a congregation or church membership while meeting together in a single location, and (ii) in the libraries, of f ices, meeting or counseling rooms or other rooms in the public church buildings used in carrying out the work of the church and its related ministries, including kindergarten, elementary and secondary schools.
However, while the nonprofit church exemption granted above is a broad one, it is not complete For example, construction and building materials used in repairing taxpayer's church premises would not qualify for the exemption.
Furthermore, property used in the maintenance of church grounds., heating and air conditioning equipment which becomes a part of real estate, property used in any manner for recording or reproducing religious worship services, and repair parts, oil, etc., for use in motor vehicles will all continue to be subject to the tax See, §630-10-22.1, Virginia Retail Sales and Use Tax Regulations.
For taxpayer's convenience, r have enclosed copies of the above referenced regulation section, (which is soon to be revised by the department), and a tax bulletin recently issued by the department concerning 1986 legislative changes to the nonprofit church exemption.
I hope all of the above has been of assistance to you, but please let me know if we may be of further assistance.
Sincerely
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner