Tax Type
Retail Sales and Use Tax
Description
Institute for equitation instruction
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
05-27-1988
May 27, 1988
Re: Request for Ruling/Retail Sales and Use Tax - Institutions of Learning Exemption.
Dear****************
This is in reference to your letter of January 6, 1988, in which you requested a ruling as to whether the ********************* ("Institute") qualifies for exemption from retail sales and use tax.
FACTS
Institute is a school which conducts a nine month instructional program in equitation. The school has facilities for about 40 students and 100 horses. It is accredited by the**********to operate a vocational technical school and is approved by the Commonwealth of Virginia Board of Education. Required courses include teaching, basic anatomy, equine first aid, and parasite control. Comprehensive examinations are given at the end of each course and a certificate of instructorship is awarded upon successful completion of the program. For work completed during the two semester Equitation Instructor Course, students may receive up to 36 credits (according to the curriculum followed) *************. Upon successful completion of the program a certificate of instructorship is awarded.
RULING
Virginia Code §§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."
Virginia Retail Sales and Use Tax Regulation §630-10-96(A)(1), provides that for an organization to qualify as an "institution of learning" for purposes of sales and use tax exemption, the organization must:
-
- a) Employ a professionally trained faculty.
b) Enroll and graduate students on the basis of academic achievement.
c) Prescribe courses of study.
d) Provide instruction at regular intervals over a reasonable period of time.
- a) Employ a professionally trained faculty.
Therefore, whenever the Institute purchases tangible personal property for its own use or consumption, such purchases will qualify for exemption from the tax, provided an appropriate certificate of exemption, Form ST-13, (copies enclosed), is presented to the vendor at the time of purchase. Exempt purchases are to be used only for the operation of the Institute
This Ruling is applicable only to the Institute. Purchases by the Foundation for the Foundation's use or consumption will be fully taxable. If an item is purchased by the Institute and used by both the Institute and the Foundation (or any other person), the-tax will apply to that portion of the cost of the item attributable to use by a taxpayer other than the Institute.
The Institute may claim a refund of taxes paid on items qualifying for the exemption. The Institute must request such refund within three years of the due date of the return for the period in which the tax was paid.
If you have any further questions, please contact me.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner