Tax Type
Retail Sales and Use Tax
Description
Nonprofit assisting church in preparing engaged couples for marriage
Topic
Exemptions
Property Subject to Tax
Date Issued
08-12-1991
August 12, 1991
Re: Request for Ruling: Sales and Use Tax
Dear***************
This will reply to your letter of July 8, 1991 in which you request a ruling on behalf of********(the Taxpayer) regarding the applicability of the retail sales and use tax on purchases made by the Taxpayer.
FACTS
The Taxpayer is a nonprofit organization exempt from federal taxation under Internal Revenue Code §501(C)(3). The Taxpayer was organized to act in accordance with the policies of the Roman Catholic Church to promote, foster, sponsor, and develop educational programs to assist in the preparation of engaged couples for marriage. The Taxpayer organizes programs including, but not limited to, weekend programs in the furtherance of their objectives. The Taxpayer receives a donation to defray the cost of the programs but undertakes no separate fund-raising program. Additionally, the Taxpayer furnishes support for other individuals in their efforts similar to the Taxpayer. The Taxpayer requests a ruling on the applicability of the tax on purchases used in the performance with 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 useful 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.
If you have any further questions regarding this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner