Tax Type
Retail Sales and Use Tax
Description
Yearbook sales
Topic
Exemptions
Date Issued
03-19-1990
March 19, 1990
Re: Request for RulingSales and Use Tax
Dear *****************
This will reply to your letter of January 22, 1990 concerning the application of the Virginia sales and use to yearbooks sold schools located in Virginia.
FACTS
************* (the Taxpayer) publishes high school yearbooks which are sold to schools located in Virginia. The Taxpayer is requesting a ruling as to the application of the Virginia sales and use to yearbooks sold.
RULING
Virginia Code §58.1-608(4)(h) provides an exemption from the tax for the following:
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- Tangible personal property purchased for use, consumption, or sale at retail by an elementary or secondary school conducted not for profit, or Parent Teacher Association or other group associated with an elementary or secondary school conducted not for profit for use in fund-raising activities, the net proceeds (gross receipts less direct expenses) of which are contributed directly to the school or used to purchase certified school equipment, and certified school equipment purchased by such groups for contribution directly to the school. For the purposes of this subdivision, "certified school equipment" shall mean that equipment for which the Parent Teacher Association or other group has received certification from the school that it will accept a donation of equipment. The certification provided by the school shall be in accordance with regulations promulgated by the Tax Commissioner. Notwithstanding the other provisions of this subdivision, the tax shall not apply to the sale of class rings, school photographs, and other fund-raising programs from which an elementary or secondary school conducted not for profit receives a commission or the net proceeds after the payment of vendors and other direct expenses.
- Tangible personal property purchased for use, consumption, or sale at retail by an elementary or secondary school conducted not for profit, or Parent Teacher Association or other group associated with an elementary or secondary school conducted not for profit for use in fund-raising activities, the net proceeds (gross receipts less direct expenses) of which are contributed directly to the school or used to purchase certified school equipment, and certified school equipment purchased by such groups for contribution directly to the school. For the purposes of this subdivision, "certified school equipment" shall mean that equipment for which the Parent Teacher Association or other group has received certification from the school that it will accept a donation of equipment. The certification provided by the school shall be in accordance with regulations promulgated by the Tax Commissioner. Notwithstanding the other provisions of this subdivision, the tax shall not apply to the sale of class rings, school photographs, and other fund-raising programs from which an elementary or secondary school conducted not for profit receives a commission or the net proceeds after the payment of vendors and other direct expenses.
Also, sales directly to a nonprofit school would be exempt provided such sales are conducted for fund-raising purposes and the school furnishes a properly completed certificate of exemption (Form ST-13), at the time of purchase. This certificate of exemption would also be required to substantiate any tax exempt sales to organizations affiliated with the school which conduct fund-raising activities the net proceeds of which will be donated to the school or used to purchase certified school equipment. I have enclosed previously issued ruling letters dated May 10 and May 12, 1988 dealing with similar situations.
If you should have any further questions, please feel free to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner