Tax Type
Retail Sales and Use Tax
Description
Nonprofit educational reading association
Topic
Taxability of Persons and Transactions
Date Issued
06-27-1989
June 27, 1989
Re: Request for Ruling: Sales and Use Tax
Dear***************
This will reply to your letter dated May 8, 1989, in which you requested a ruling whether your organization qualifies for exemption from sales and use tax.
FACTS
*************("The Taxpayer"), a nonprofit organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code: encourages the study of reading instruction at all educational levels within the Commonwealth; disseminates new developments in the teaching of reading; stimulates and promotes research in developmental, corrective, and remedial reading; and, sponsors an annual reading conference which emphasizes improving professional standards in teaching of reading and related language arts.RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations. The only exemptions from the tax are set out in Virginia Code §58.1-608. While I am mindful of the worthwhile purpose that the Taxpayer serves, absent a statutory exemption that would allow the Taxpayer to make purchases exempt from the tax, the department has no authority to grant such an exemption.
Therefore, the Taxpayer is required to pay the tax on all purchases of tangible personal property to the retailer at the time of purchase. If the retailer is not registered to collect the tax, the Taxpayer must report and pay the use tax on a Consumer Use Tax Return, ST-7.
If we can be of further assistance, please contact us.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner