Tax Type
Retail Sales and Use Tax
Description
Emergency shelter facilities; Nonprofit exemption criteria
Topic
Exemptions
Date Issued
10-29-1990
October 29, 1990
Re: Request for Ruling: Retail Sales and Use Tax
Dear******************
This will reply to your letter dated September 22, 1990 in which you request a ruling whether*********(the "Taxpayer") qualifies for exemption from the sales and use tax.
FACTS
The Taxpayer, exempt from income taxation under §501(c)(3) of the Internal Revenue Code, is organized to develop and operate an emergency shelter facility, coordinate the efforts of churches to establish and operate emergency shelters, and work with the Department of Social Services and the Department of Community Development in meeting emergency shelter needs. The Taxpayer requests a ruling whether it is exempt from sales and use tax under Va. Code §58.1-608(8)(1).
RULING
Effective July 1, 1989, Va. Code §58.1-608(8)(1) provides an exemption from the retail sales and use tax for:
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- tangible personal property purchased for use or consumption by a §501(c)(3) organization that is organized exclusively for the purpose of providing food, shelter, clothing or other items to homeless persons in the Commonwealth.
Based on the purpose of your organization as outlined in your Articles of Incorporation, I find that the Taxpayer qualifies for the exemption cited above. Please note that this exemption applies only to tangible personal property purchased for use and consumption by the Taxpayer.
I have enclosed a copy of Form ST-13, which should be completed for use in making exempt purchases. Item 15 applies to the Taxpayer.
If you have any further questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner