Tax Type
Retail Sales and Use Tax
Description
Agricultural development organization for youth
Topic
Taxability of Persons and Transactions
Date Issued
11-07-1989
November 7, 1989
Re: Request for Ruling/Sales & Use Tax
Dear****************
This will reply to your letter of May 9, 1989 in which you request a ruling on whether the above referenced****************(the "Centers") qualify for exemption from the sales and use tax under Virginia Code §58.1-608(8)(n).
FACTS
The Centers, nonprofit organizations exempt from income taxation under §501(c)(3) of the Internal Revenue Code, generally, were incorporated to foster and encourage the development of youth in cooperation with the Federal Agricultural Extension Service or the Virginia Agricultural Extension Service and other local, state and federal agencies, groups, business concerns and individuals as have mutual interests by education, recreation, social and community programs and services, and to engage in activities in connection with such programs and services. The Centers are used for extensive summer*****camping programs, weekend camps and hosting a variety of meetings, workshops and conferences.
RULING
Virginia law does not provide a general exemption from the sales and use tax for nonprofit organizations. The only exemptions from the tax are set out in §58.1-608 of the Code of Virginia.
Virginia Code §58.1-608(8)(n) provides an exemption from sales and use tax for:
-
- [t]angible personal property purchased for use or consumption, or to be sold at retail, by any nonsectarian youth organization exempt from taxation under §501(c)(3) of the Internal Revenue Code which is organized for the character development and citizenship training of its members using the methods now in common use by Girl Scout or Boy Scout organizations in Virginia.
- [t]angible personal property purchased for use or consumption, or to be sold at retail, by any nonsectarian youth organization exempt from taxation under §501(c)(3) of the Internal Revenue Code which is organized for the character development and citizenship training of its members using the methods now in common use by Girl Scout or Boy Scout organizations in Virginia.
To qualify for the exemption, an organization must (i) be a nonprofit nonsectarian youth organization, (ii) be organized for the character development and citizenship training of its members, and (iii) use the methods now in common use by Girl Scout or Boy Scout organizations in Virginia.
Based upon review of the information you have provided and applying the rule of narrow construction for exemptions from taxation, the Centers do not meet all of the necessary criteria for exemption under Virginia Code §58.1-608(8)(n). Notwithstanding the worthwhile purposes the Centers serve, absent a statutory exemption that would allow the Centers to make purchases exempt of the tax, the department has no authority to grant an exemption to the Centers. Therefore, all tangible personal property purchased by the Centers will be subject to the tax.
I regret that I am not able to provide you with a more favorable response. If you have additional questions or if we may be of any further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner