Tax Type
Retail Sales and Use Tax
Description
Nonprofit veterans organization; Lodgings and accommodations; Exemption criteria
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
07-18-1986
July 18, 1986
Re: Ruling Request/Sales and Use Tax
Dear ********************
This will reply to your letter of May 30, 1986 to Governor Gerald. L. Baliles, which has been referred to the department for a response and the additional information you submitted on June 8, regarding this case.
FACTS
************* (taxpayer), a nonprofit 501(c)(3) organization, is organized for the purpose of holding an annual reunion for veterans of the U.S. military who have served on ships with a common surname. Taxpayer also publishes a quarterly bulletin of an informational nature to help keep its members apprised of deaths and illnesses of fellow members as well as to provide information about upcoming reunions.
Taxpayer recently held one of its reunions in *************, Virginia where it was required to pay sales tax on its purchases of meals, lodging and other items. Taxpayer now seeks an exemption from the sales tax with regard to any future reunions it might decide to hold in Virginia.
RULING
§58.1-602(14) of the Code defines "sale at retail" as including:
-
- charges for any room or rooms, lodgings or accommodations furnished ...for less than ninety continuous days by any hotel, motel, inn... etc.., or any other place in which rooms, lodging, space, or accommodations are regularly furnished ... for a consideration.
Furthermore, §630-10-64 of the Virginia Retail Sales and Use Tax Regulations provides in pertinent part that the tax applies to, "sales of meals by restaurants, hotels, motels, clubs, caterers, cafes and others... [and to] any cover, minimum and room service charges in connection with the provision of meals."
In addition, §58.1-608(18) of the Code provides an exemption from the sales and use tax for, "[t]angible personal property for use or consumption by the Commonwealth, any political subdivision of the Commonwealth, or the United States." However, there has been no showing that the reunion committee in this case is an actual agency or branch of the federal government.
Accordingly, and in the absence of any specific exemption to the contrary, Virginia's sales and use tax does apply to charges for meals and lodging. In addition, there is no general sales and use tax exemption in Virginia for nonprofit organizations such as the reunion committee. It is worth noting further that federal, state and local government employees must pay the tax on meals and lodging even though they are reimbursed by the government for such expenses.
Therefore, while appreciative of taxpayer's laudable goals and objectives, I find no basis in the Virginia sales and use tax law for granting an exemption in this case.
Thank you for submitting the additional information mentioned above, and please let us know if we may be of further assistance.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner