Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization engaged in scientific and educational activities
Topic
Exemptions
Date Issued
03-19-1991
March 19, 1991
Re: Request for Ruling: Sales and Use Tax
Dear**********
This will reply to your letter of September 25. 1990, in which you requested a ruling as to whether the *****************(the Taxpayer) qualifies for exemption from sales and use tax.
FACTS
The Taxpayer, a nonprofit organization exempt from income taxation under §501(C)(3) of the Internal Revenue Code, is a national and international organization that is engaged in scientific and educational activities for the preservation, conservation and protection of endangered marine ecosystems and resources. The Taxpayer performs scientific research in Virginia, Mexico, Dominican Republic, the North Sea and other areas. Additionally, the Taxpayer is a participant in the International Whaling Commission. The Taxpayer is seeking an exemption from the sales and use tax for its purchases of tangible personal property used in performance of its work.
RULING
Va. Code §58.1-608(9)(I) provides an exemption from retail sales and use tax for:
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- Tangible personal property purchased for use or consumption by a national and international, nonprofit, scientific, and educational organization exempt from taxation under §501(C)(3) of the Internal Revenue Code whose resources are devoted to preserving ecologically significant areas in order to safeguard rare or endangered species or critical natural habitats.
Based on the purpose of your organization as outlined in the Articles of Incorporation and the facts you have provided, I find that your organization qualifies for the exemption cited above. Please note that this exemption applies only to tangible personal property purchased for use and consumption by the Taxpayer.
If you have any further questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner