Tax Type
Retail Sales and Use Tax
Description
Nonprofit; rehabilitation programs for persons with mental illness
Topic
Exemptions
Property Subject to Tax
Date Issued
01-18-1991
January 18, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear**********************
This will reply to your letter of November 6, 1990 in which you request a ruling on the application of the Virginia sales and use tax on purchases made by ****************(the Taxpayer).
FACTS
The Taxpayer is a nonprofit organization exempt from taxation under §501(C)(3) of the Internal Revenue Code, organized to provide treatment and rehabilitation programs to assist persons with long term mental illness to live independently. Additionally, the Taxpayer also provides vocational training and social interaction programs. The Taxpayer seeks a ruling on the application of the retail sales and use tax on purchases made in its work.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations. The only exemptions are set out in Va. Code §58.1-608. 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. Therefore, the Taxpayer is required to pay the tax to its retailers on all purchases of tangible personal property. If a retailer is not registered to collect the tax, the Taxpayer must report and pay use tax on a Consumer Use Tax Return, Form S-7.
If you have any further questions regarding this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner