Tax Type
Retail Sales and Use Tax
Description
Nonprofit providing advancement of community college education
Topic
Exemptions
Date Issued
03-05-1990
March 5, 1990
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of February 1, 1990 in which you requested a ruling whether ***** (the Taxpayer) qualifies for exemption from the sales and use tax.
FACTS
The Taxpayer is a nonprofit organization established to provide support for the advancement of the community colleges throughout the state of Virginia. The Taxpayer's primary purpose is the advancement of community college education in Virginia with a primary focus on professional growth and development. Membership to the organization is primarily made up of institutional members, i.e. community colleges, and also students, faculty and employees of community colleges located throughout the state. Membership dues and contributions provide funding to the Taxpayer.
Specifically, you are seeking 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 (see §630-10-74 of Virginia Retail Sales and Use Tax Regulations). The only exemptions from the tax are set out in Virginia Code §58.1-608. While I am mindful of the worthwhile purpose that 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.
If I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner