90-4 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Nonprofit Blood Bank; Exemption criteria

Topic

Exemptions

Date Issued

01-02-1990

January 2, 1990

Re: Ruling Request/ Sales and Use Tax

Dear********************

This will reply to your letter of October 10, 1989 seeking an exemption from the sales and use tax under Virginia Code §58.1-608(7)(n) for the*************(the "Taxpayer" ), a nonprofit blood bank. This also has reference to information recently provided by the Taxpayer in a meeting with my staff.

Virginia Code §58.1-608(7)(n) provides an exemption from the sales and use tax for:

- Tangible personal property purchased for use or consumption by a tissue bank exempt from taxation under §501(c)(3) of the Internal Revenue Code and established for purposes of harvesting, preserving, processing and distributing bones, skin and other human tissue to licensed physicians for clinical use.

Based on the documentation provided which illustrates the general acceptance within the medical community of blood as a human tissue, I find basis for extending this exemption to the Taxpayer. The Taxpayer should provide its vendors with a copy of this letter in order to substantiate its qualification for the exemption. Please note however, that this exemption will expire on July 1, 1993 unless reenacted by the General Assembly .

Let the department know if you have any further questions.

Sincerely,

W.H. Forst
Tax Commissioner

Rulings of the Tax Commissioner