Tax Type
Retail Sales and Use Tax
Description
Nonprofit providing horseback riding as therapy for handicapped individuals
Topic
Taxability of Persons and Transactions
Date Issued
12-20-1989
December 20, 1989
Re: Request for Ruling/Sales and Use Tax
Dear*************
This will reply to your letter of August 8, 1989 in which you requested a ruling whether********** (the Taxpayer) qualifies for exemption from the sales and use tax.
FACTS
The Taxpayer, a nonprofit organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code, is organized for the purpose of providing therapeutic horseback riding to handicapped individuals as physical, emotional, or developmental therapy. The Taxpayer is an all volunteer organization and is an active member of the North American Riding for the Handicapped Association and the Therapeutic Riding Association of Virginia. A copy of the Taxpayer's article of incorporation has been requested twice, but has never been received by the department.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations (see §630-10-74 of the Virginia Retail Sales and Use Tax Regulations). 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 additional information on the Taxpayer's activities, I am unable to determine at this time whether it qualifies for an exemption from the tax.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner