Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization that promotes the arts
Topic
Exemptions
Date Issued
09-21-1990
September 21, 1990
Re: Request for Ruling/ Sales and Use Tax
Dear ***********
This will reply to your letter of July 15, 1990 in which you request a ruling whether the ****** ("The Taxpayer") qualifies for an exemption from the Virginia retail sales and use tax.
FACTS
The Taxpayer, a nonprofit organization exempt from income tax under IRC §501 (C)(3), is organized to encourage and develop interest in and the study of the arts and to provide ways and means for the purchase of works in the arts. The Taxpayer is seeking an exemption from the sales and use tax for purchases of tangible personal property used in their efforts.
RULING
While there is no general exemption from the Virginia sales and use tax for nonprofit organizations, based on the facts as presented, the Taxpayer falls under the exemption provided for in Va. Code §58.1-608 (9)(k), which provides an exemption from sales and use tax for tangible personal property purchased for use or consumption by a nonprofit organization exempt from income taxation under IRC §501 (C)(3), which coordinates and promotes art in the ***. This exemption is effective beginning July 1, 1990 through June 30, 1994.
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