Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization - Child abuse; Exemption criteria
Topic
Exemptions
Property Subject to Tax
Date Issued
08-02-1991
August 2, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear*****************
This will reply to your request for a ruling whether***********(the Taxpayer) qualifies for an exemption from the sales and use tax.
FACTS
The Taxpayer is a nonprofit organization exempt from federal income taxation under Internal Revenue Code §501(C)(3). The Taxpayer was organized to teach and foster the prevention of cruelty to children; to create a state-wide coalition of diverse child abuse and neglect services and agencies to provide coordination and assistance for the prevention and treatment of child abuse; and to be able to receive and administer any real or personal property used in the prevention and treatment of child abuse. The Taxpayer requests a ruling on the applicability of the retail sales and use tax on purchases made in the performance of their work.
RULING
There is no general exemption from the Virginia Retail Sales and Use Tax for nonprofit organizations. The only exemptions from the tax are set out in Va. Code §58.1-608, copy enclosed. While I am mindful of the worthwhile purpose 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.
Va. Code §58.1-608(A)(8)(g) provides an exemption for organizations that are organized exclusively for maintaining and operating group homes for the shelter and care of abused and neglected children in the Commonwealth on a long-term or short-term basis. Under the present facts, the Taxpayer does not qualify for this exemption because the Taxpayer does not maintain or operate such a facility.
If you have any further questions regarding this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner