90-153 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Nonprofit providing social services to homeless persons

Topic

Exemptions

Date Issued

08-30-1990

August 30, 1990

Re: Request for Ruling: Sales and Use Tax

Dear ****

This will reply to your letter of July 5, 1990, supplemented by your letter of August 16, 1990, in which you requested a ruling as to whether the ***** (the "Taxpayer") qualifies for exemption from the sales and use tax under Virginia Code §58.1-608(8)(q).

RULING

Virginia Code §58.1-608(8)(q), from July 1, 1990 until June 30, 1993, provides an exemption from the retail sales and use tax for:

- Tangible personal property purchased for use or consumption by a nonstock, nonprofit charitable corporation exempt from taxation under §501(c)(3) of the Internal Revenue Code and organized and operated to offer social services, including, but not limited to, transitional housing for homeless individuals, employment counseling, placement and referral services to persons in financial need, health-related assistance, child care for children whose parents are either employed or enrolled in job training programs, emergency assistance (including the provision of food) to persons in financial need who may face eviction or termination of utility services, and related social welfare activities.

Based on the purpose of your organization as outlined in the Articles of Incorporation and the facts you have provided, I find that the Taxpayer qualifies for the exemption cited above. The Taxpayer should provide its suppliers with a copy of this letter to obtain the exemption. Please note that this exemption applies only to tangible personal property purchased for use and consumption by the Taxpayer.

If you have any further questions, please contact the department.

Sincerely,

W. H. Forst
Tax Commissioner

Rulings of the Tax Commissioner