Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization engaged in ecological activities; Exemption criteria
Topic
Exemptions
Property Subject to Tax
Date Issued
04-12-1990
April 12, 1990
Re: Request for Ruling: Sales and Use Tax
Dear ****
This is to reply to your letter of January 26, 1990, in which you request a ruling whether the ***** ("The Taxpayer") qualifies for an exemption from the Virginia retail sales and use tax.
FACTS
The Taxpayer a nonprofit organization exempt from income taxation under §501 (c)(3) of the Internal Revenue Code, was organized for charitable, educational, scientific and literary purposes. The Taxpayer is engaged in ecological activities relating to ***** and surrounding endangered areas. The Taxpayer seeks an exemption allowing it 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 the Virginia Retail Sales and Use Tax Regulations, copy enclosed). 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