Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization devoted to professional development; Exemption criteria
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
02-06-1986
February 6, 1986
Re: Ruling Request/Sales and Use Tax
Dear *********************
This will reply to your letter of December 16, 1985 requesting a ruling on the correct application of the sales and use tax to educational seminars and conferences of your organization conducted in Virginia.
Facts
************* is a nonprofit organization incorporated in the District of Columbia primarily devoted to the education ant professional development of its dues paying members (business tax professionals), through its sponsorship of several educational seminars and an annual conference in different locations throughout the country. These seminars are conducted on both university campuses, and hotel environments.
Ruling
§58.1-608(23) exempts from sales and use taxation, tangible personal property used or consumed "by a college or other institution of learning . . . provided such college [or] institution of learning is not conducted for profit."
§630-10-96(A)(1) of the Virginia Sales and Use Tax Regulations requires that to qualify as an "institution of learning," an organization must be similar to a college, in that it must:
a.) employ a professionally trained faculty,
b.) enroll and graduate students on the basis of academic achievement,
c.) prescribe courses of study, and
d.) provide instruction at regular intervals over a reasonable period of time.
Based on the facts presented and the sales and use tax law cited, I find no basis for granting an exemption from the sales and use tax to taxpayer in connection with their educational seminars and conferences. Furthermore, I have enclosed a copy of the applicable regulations and several ruling letters recently issued by the department on this issue. Please let me know if you have any other questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner