Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Occasional sales
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
09-18-1986
September 18, 1986
Re: Ruling Request/ Sales and Use Tax
Dear ************************
This will reply to your letter of July 31, 1986 seeking an exemption from the sales and use tax for the********************** (taxpayer).
FACTS
It is understood from your letter that taxpayer, a nonprofit corporation, is serving as host association for the upcoming 31st ****************conference to be held in Virginia from September 24 through 28, 1986. Taxpayer seeks an exemption from the sales and use tax generally, as a nonprofit corporation, and specifically in connection with its role as host of the above referenced conference.
RULING
Initially, it should be noted that taxpayer's nonprofit status does not automatically make it eligible for exemption from the sales and use tax since there is no general exemption in Virginia's sales and use tax law for nonprofit organizations. Rather, §630-10-74 of the Virginia Retail Sales and Use Tax Regulations provides in pertinent part that, absent specific exemption, "all tangible personal property purchased for use or consumption by religious, charitable, civic and other nonprofit organizations, is taxable."
Accordingly, based on the information provided, I find no basis in Virginia law to grant a sales and use tax exemption to taxpayer in this case.
However, §58.1-608(15) of the Virginia Code exempts from the sales and use tax, an "occasional sale" of tangible personal property. An "occasional sale" is then defined in Section 630-10-75 of the Virginia Sales and Use Tax Regulations as including, "[a] sale by a person who is engaged in sales on three or fewer occasions within one calendar year, except that sales at fairs, flea markets, circuses and carnivals and sales made by peddlers and street vendors are not occasional sales." (emphasis added)
The conference for which taxpayer will serve as host is a one-time event. Accordingly, so long as taxpayer conducts two or fewer other sales during 1986, it will not be required to collect sales tax on any sales it may make to attendees of the above referenced conference. In addition, none of such purchasers will incur any use tax on their purchases from taxpayer.
Notwithstanding all of the above, all other purchases made by taxpayer and its conference participants, such as purchases of meals and lodging while attending the conference, will be subject to the tax at the time of purchase.
I hope all of the above has responded to your questions, but please let me know if I may be of further assistance.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner