Tax Type
Retail Sales and Use Tax
Description
Nonprofit Agencies on Aging
Topic
Exemptions
Date Issued
04-12-1990
April 12, 1990
Re: Ruling Request: Sales and Use Tax
Dear******************
This will reply to your letter of February 23, 1990 seeking a ruling whether nonprofit area agencies on aging qualify for a retail sales and use tax exemption on certain purchases.
FACTS
Of the 25 local Area Agencies on Aging in the state, 14 are currently operated as nonprofit organizations independent of local government. one of these 14 nonprofit agencies has asked whether its purchase of tires for use on its fleet of 21 vehicles used in its nutrition program for the elderly, qualifies for exemption from the sales and use tax.
RULING
Virginia Code §58.1-608(8)(c) provides an exemption from the sales and use tax for, "[t]angible personal property sold or leased for use in nonprofit nutrition programs for the elderly qualifying under 42 U.S.C. §3030 (e) through (g), as amended, as administered by the Virginia Department for the Aging, and the food and food products sold under such programs to elderly persons."
In addition, Virginia Code §58.1-644 of the Virginia Tire Tax provides that "[t]he provisions in Chapter 6 (§58.1-600 et seq.) of this title shall apply to this chapter, mutatis mutandis, except as herein provided and except that replacement truck tires shall be subject to the tax imposed Pursuant to this chapter." (Emphasis added)
Based on the information provided indicating that the 14 nonprofit agencies operate nutrition programs that qualify under 42 U.S.C. §3030 (e) through (g), as amended, I find basis for concluding that they qualify for tax exemption on their purchases of tires for use on delivery vehicles. The agencies should use Form ST-13 in order to substantiate these tax exempt tire purchases.
Since the tire purchases qualify for retail sales and use tax exemption they also qualify for exemption from the Virginia tire tax under the above referenced code section, if they are not "replacement truck tires." A "replacement truck tire" is defined in Virginia Regulation 630-27-640, copy enclosed, as "a new tire designated by industry standards for use on a truck which is sold to replace a tire attached to or used as a spare on a truck." Thus, if any of the tires purchased by the agencies are replacement truck tires, they will qualify for exemption from the sales and use tax, but will not qualify for exemption from the tire tax. (See also, §2(B) of VR 630-27-642, enclosed). An ST-13 given by the agencies to tire vendors under these circumstances would provide an exemption from the sales and use tax, but would not provide an exemption from the Virginia tire tax.
I hope this has responded to your question, but let me know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner