89-174 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Church Christmas play; Property purchased by churches

Topic

Exemptions

Taxability of Persons and Transactions

Date Issued

05-31-1989

May 31, 1989

Re: Ruling Request/ Sales and Use Tax

Dear*********************

This will reply to your letter of March 6, 1989 seeking information on the application of the sales and use tax to the rental by ************(taxpayer) of tangible personal property to a church for use in a Christmas play.

Virginia Code §58.1-608(38) exempts from the sales and use tax:

- Tangible personal property...purchased by churches...(i) which are exempt from taxation under §501(c)(3) of the Internal Revenue Code or (ii) whose real property is exempt from local taxation pursuant to the provisions of §58.l -3606, for use (i) in religious worship services by a congregation or church membership while meeting together in a single location, and (ii) in the libraries, offices, meeting or counseling rooms or other rooms in the Public church buildings used in carrying out the work of the church and its related ministries. (Emphasis added)

I find basis for concluding that tangible personal property rented to a church, as defined above, for use by the church in the performance of its Christmas play, is used in carrying out the work of the church and its related ministries and therefore qualifies for tax exemption, if the play is performed in the church itself or in public church buildings adjacent to the church, and if the church provides the taxpayer with a properly completed certificate of exemption (Form ST-13A), copy enclosed, at the time the property is rented.

I hope that the foregoing has responded to your question, but let me know if you have any further questions.

Sincerely,

W. H. Forst
Tax Commissioner

Rulings of the Tax Commissioner