Tax Type
Retail Sales and Use Tax
Description
Instructional program; "Institution of learning" exemption criteria
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
06-29-1988
June 29, 1988
Re: Request for Ruling: Retail Sales and Use Tax - Institutions of Learning
Dear*****************
This is in reference to your letter of April 12, 1988, in which you requested a ruling as to whether the *************** ("The Center") qualifies for exemption from retail sales and use tax.
FACTS
The Center conducts a nine month instructional program in international development and training and also offers shorter programs designed to foster trade, technology, government operations, commerce, and promote export-import activities and international development. The Center was created primarily for managers of emerging countries and for international affair managers; it is accredited by the National College of Education. Required courses include Human Resources and Managerial Effectiveness, Management Development, Financial Management, International Marketing and Trade, and Managerial Economics for Developing Countries. To be accepted into the nine month program, students must have completed an undergraduate program at an accredited school and also meet certain standards set by the Center. Students who complete the nine month program receive a Masters Degree in International Management Development from ************* University or the National College of Education. Students who successfully complete the shorter programs receive a Certificate of Achievement from the Center in the particular area of study.
RULING
Virginia Code §58.1-608(23) provides an exemption from the sales and use tax for purchases for use or consumption by nonprofit colleges or other institutions of learning. 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 Center 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. If you have any further questions, please contact me .
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner