Tax Type
Retail Sales and Use Tax
Description
Nonprofit youth sports organization
Topic
Taxability of Persons and Transactions
Date Issued
03-08-1989
March 8, 1989
Re: Request for Ruling: Retail Sales and Use Tax
Dear********************
This will reply to your letter dated November 28, l 988, 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 §601(c)(3) of the Internal Revenue Code, sponsors and maintains youth programs within the Commonwealth. These programs include discussions, seminars, summer camping, and leadership training for youth ages nine to twenty-seven with the purpose of educating the youth to be respectable American citizens as well as giving them a Jewish identity. The Taxpayer also operates full scale teaching medical centers in the State of Israel and sponsors various assistance programs throughout the world.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations (see enclosed copy of Virginia Retail Sales and Use Tax Regulation §630-10-74). The only exemptions from the tax are set out in §58. l-608 of the Code of Virginia. 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 I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner