Tax Type
Retail Sales and Use Tax
Description
Licensed nonprofit home for adults
Topic
Exemptions
Date Issued
12-13-1989
December 13, 1989
Re: Request for Ruling: Sales and Use Tax
Dear***************
This will reply to your letter of November 13, 1989, in which you requested a ruling as to whether ************** ("The Taxpayer") qualifies for exemption from sales and use tax under Virginia Code §58.1-608(8)(j).
§58.1-608(8)(j) of the Code of Virginia provides an exemption from retail sales and use tax for [t]angible personal property for use or consumption by a licensed nonprofit home for adults as defined in subsection A of Virginia Code §63.1-172. Virginia Code §63.1-172(A) defines "home for adults" as including "any day-care center for adults, operated or maintained for the maintenance or care of four or more adults who are aged, infirm or disabled."
Based on the purpose of your organization as outlined in the Articles of Incorporation and the facts you have provided, it appears that your organization qualifies for the exemption cited above. However, this qualification assumes that the taxpayer is licensed by the state as a home for adults. If this assumption is incorrect, the exemption is inapplicable. Also, please note that this exemption applies only to tangible personal property purchased for use and consumption by the Taxpayer.
If you have any further questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner