Tax Type
Retail Sales and Use Tax
Description
Nonprofit providing disabled and/or terminally ill children and their families with therapeutic and educational intervention
Topic
Exemptions
Date Issued
08-30-1990
August 30, 1990
Re: Ruling Request/Sales and Use Tax
Dear ************
This will reply to your letter of June 27, 1990 seeking a sales and use tax exemption for ********* (the "Taxpayer").
FACTS
According to its articles of incorporation, the Taxpayer is organized to provide medically directed interdisciplinary therapeutic and educational intervention to disabled and/or terminally ill children and their families. You state that the Taxpayer receives more than 50% of its funding from government agencies for the services it provides to mentally handicapped and terminally ill children. You ask whether the Taxpayer qualifies for any of the exemptions from the sales and use tax.
RULING
Virginia Code §58.1-608(4)(c) provides an exemption from the sales and use tax for:
-
- Tangible personal property purchased by an organization exempt from income taxation under 501(c)(3) of the Internal Revenue Code and organized exclusively for the purpose of providing education, training and services to retarded citizens of the Commonwealth, provided such property is used exclusively for the purpose set forth herein and further provided that such organization receives more than fifty percent of its total funding from federal, state, or local governments. (Emphasis added)
Additionally, Virginia Code §58.1-608(7)(h) provides an exemption from the sales and use tax for:
-
- Tangible personal property purchased by a voluntary health organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code and organized exclusively for the purpose of providing direct therapeutic and rehabilitative services, such as speech therapy, physical therapy, and camping and recreational activities, to the children and adults of the Commonwealth regardless of the nature of their disease or socio-economic position. (Emphasis added)
- Tangible personal property purchased by a voluntary health organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code and organized exclusively for the purpose of providing direct therapeutic and rehabilitative services, such as speech therapy, physical therapy, and camping and recreational activities, to the children and adults of the Commonwealth regardless of the nature of their disease or socio-economic position. (Emphasis added)
Based on the foregoing, and mindful of the worthwhile purposes the Taxpayer serves, since the Taxpayer is not organized exclusively for the above stated purposes, I cannot find that the Taxpayer qualifies for an exemption.
Please let the department know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner