Tax Type
Retail Sales and Use Tax
Description
Amateur tennis association
Topic
Taxability of Persons and Transactions
Date Issued
03-09-1989
March 9, 1989
Re: Ruling Request/ Sales and Use Tax
Dear********************
This will reply to your letter of January 10, 1989 seeking a sales and use tax exemption for the *************(taxpayer) an organization exempt from federal income taxation under Internal Revenue Code §501(c)(3).
FACTS
The taxpayer is a local association formed to promote amateur tennis in and about the City of ******* which provides free tennis instruction and runs tennis tournaments as a service to the community. The taxpayer is the local chapter of the National Junior Tennis League which is also a nonprofit organization formed in 1981.
RULING
There is no general exemption from the sales and use tax for nonprofit organizations (See, Virginia Regulation 63O-10-74, enclosed). The only exemptions from the tax are those set forth in Virginia Code §58.1-608. While I am mindful of the worthwhile purposes that the taxpayer serves, absent some specific statutory exemption that would permit the taxpayer to make purchases exempt from the tax, the department has no authority to grant such an exemption.
Accordingly, the taxpayer must pay the tax on all of its purchases of tangible personal property, such as equipment and trophies.
Please let me know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner