Tax Type
Recordation Tax
Description
Deed to diagnostic and rehabilitative facility
Topic
Documents Subject to Tax
Date Issued
03-31-1987
March 31, 1987
Re: §58.1-1821 Application; Recordation Tax
§58.1-811 Exemptions; Educational Institution and
Non-Profit Hospital
Dear *****************
This is in response to your letter of May 28, 1986, in which you applied for correction of an assessment of recordation tax on a deed and deed of trust in connection with the purchase of real estate by your organization. You claim that your organization should be exempt from recordation tax because it is a non-profit organization and a United Way affiliate.
Your organization is a non-stock, non-profit corporation which provides diagnostic and treatment procedures, rehabilitative counselling and consultative services to anyone concerned about their communication efficiency and defects in speech and hearing.
In Virginia statutes granting an exemption from taxation are strictly construed against the exemption. There is no general exemption for all non-profit organizations. After reviewing the nature of your organization and the exemptions contained in §58.1-811, it does not appear that there is any exemption which applies.
Although education of the public and clients is a part of the function of your organization, such programs do not qualify as a "college or other incorporated institution of learning" as that term is used in §58.1-811 A. 1. and B. 1.
Although your organization is a non-stock corporation offering medical treatment, it is not licensed by the Board of Health as a hospital under Va. Code Ann. §32.1-123 et seq. Therefore your organization is not a "hospital" as that term is used in §58.1-811 A. 5. and B. 3.
Accordingly, the recordation tax was properly imposed by the clerk upon recordation of the deed and deed of trust.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner