Tax Type
Retail Sales and Use Tax
Description
Nonprofit providing therapeutic horseback riding to handicapped individuals
Topic
Exemptions
Date Issued
03-07-1990
March 7, 1990
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of January 2, 1990 in which you requested a ruling whether ***** (the Taxpayer) qualifies for exemption from the sales and use tax.
FACTS
The Taxpayer, a nonprofit organization exempt from income taxation under 501(c)(3) of the Internal Revenue Code, is organized for the purpose of providing therapeutic horseback riding to handicapped individuals as physical, emotional, or developmental therapy. The Taxpayer is an all volunteer organization and is an active member of the North American Riding for the Handicapped Association and the Therapeutic Riding Association of Virginia.
RULING
Virginia Code §58.1-608(7)(h), provides an exemption from the retail sales and use tax for:
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- Tangible personal property purchased by a voluntary health organization exempt from 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.
Based on the purpose of your organization as outlined in the documentation you have provided, I find that your organization 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.
If you should have any further questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner