Tax Type
Retail Sales and Use Tax
Description
Clubs and Organizations
Topic
Exemptions
Date Issued
06-25-1990
June 25, 1990
Re: Request for Ruling: Sales and Use Tax
Dear***************
This will follow up on your May 23, 1990 meeting with***********the Tax Policy Division regarding the department's ruling on the applicability of the sales and use tax *********clubs and organizations. You also requested a determination on the applicability of the sales and use tax to purchases of peanuts by the ********** (the "Foundation") for resale to local **********(the "Clubs").
The Foundation may purchase peanuts from its vendor exempt of the tax provided all sales are for resale and no sales are made which require the collection of the tax. This letter will serve as authorization for the Foundation to purchase such items exempt of the tax for resale only. This ruling is applicable only to purchases by the Foundation for resale. The purchase of tangible personal property for the Foundation's own use and consumption will remain fully taxable.
As set forth in my ruling letter dated November 7, 1989, the Clubs are exempt from the sales and use tax on the purchase and sale of tangible personal property pursuant to Va. Code §58.1-608(8)(n). Thus, peanuts may be purchased by the Clubs from the Foundation exempt from the tax. Further, subsequent sales of peanuts by the Clubs are exempt from the tax.
If you have any further questions regarding this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner