Tax Type
Retail Sales and Use Tax
Description
Nonprofit planning and developing health delivery systems
Topic
Exemptions
Date Issued
07-03-1990
July 3, 1990
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will respond to your letter dated May 16, 1990 in which you request a ruling whether your organizations qualifies for exemption from the sales and use tax.
FACTS
**** (the "Taxpayer"), a private nonprofit organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code, is organized for the purpose of planning and developing health delivery systems including mental, physical, and environmental health so that an optimal quality of health care delivery program of equal access is provided for all citizens of its service area with minimum duplication of effort and at reasonable cost. 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. The only exemptions from the tax are set out in Virginia Code §58.1-608 (copy enclosed). While I am mindful of the worthwhile purpose 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.
I regret that I am not able to provide you with a more favorable response. If I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner