Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization providing family planning
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 October 26, 1989 in which you request 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 set up to provide a program of family planning and responsible human sexuality to the entire community through education, advocacy and health care services. Specifically, you seek an exemption to allow the Taxpayer to purchase items exempt from the Virginia retail sales and use tax.
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 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 to the retailer on all purchases of tangible personal property if the retailer is registered to collect the tax. 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, Form ST-7.
If I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner