Tax Type
Retail Sales and Use Tax
Description
Nonprofit Organizations, Private Schools and Churches
Topic
Taxability of Persons and Transactions
Date Issued
11-23-1998
November 23, 1998
Re: Request for Ruling: Retail Sales and Use Tax
Dear *****
This is in reply to your letter of October 6, 1998, in which you request a ruling regarding the availability of a retail sales and use tax exemption for ***** (the "Taxpayers').
FACTS
The Taxpayers are nonprofit organizations exempt from income taxation pursuant to Sec. 501 (c)(3) of the Internal Revenue Code. The Taxpayers are organized "to provide for elderly persons and handicapped persons housing facilities and services specially designed to meet their physical, social, and psychological needs, and to promote their health, security, happiness and usefulness in longer living.'
You ask if the Taxpayers qualify for the exemption enacted by the 1998 General Assembly for a nonprofit organization receiving federal grant assistance under the Department of Housing and Urban Development (HUD) Section 8 programs.
RULING
Code of Virginia Sec. 58.1-609.8(40) provides an exemption from the retail sales and use tax for:
The department has previously ruled that one of the Taxpayers qualifies for the sales and use tax exemption provided under Code of Virginia Sec. 58.1-609.8(40) for food, food products, and services sold to residents under a HUD-approved meal plan.
Based on the information provided and a review of the Taxpayers' Articles of Incorporation, each Taxpayer is a nonprofit organization exempt from taxation under Sec. 501 (c)(3) of the Internal Revenue Code. The Taxpayers receive federal grant assistance under the HUD Section 8 programs. Therefore, the Taxpayers satisfy the requirements under the statute and qualify for the exemption for tangible personal property purchased for their use or consumption.
The exemption is effective through June 30, 1999. As verification of the Taxpayers exempt status, a copy of this letter should be furnished to each vendor from whom exempt purchases are made. You will not receive a separate tax exempt number and such a number does not need to be furnished to your vendor in order to make purchases exempt of the tax.
If you have any questions regarding this matter, you may contact ***** the department's Office of Tax Policy at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/17871F
Re: Request for Ruling: Retail Sales and Use Tax
Dear *****
This is in reply to your letter of October 6, 1998, in which you request a ruling regarding the availability of a retail sales and use tax exemption for ***** (the "Taxpayers').
FACTS
The Taxpayers are nonprofit organizations exempt from income taxation pursuant to Sec. 501 (c)(3) of the Internal Revenue Code. The Taxpayers are organized "to provide for elderly persons and handicapped persons housing facilities and services specially designed to meet their physical, social, and psychological needs, and to promote their health, security, happiness and usefulness in longer living.'
You ask if the Taxpayers qualify for the exemption enacted by the 1998 General Assembly for a nonprofit organization receiving federal grant assistance under the Department of Housing and Urban Development (HUD) Section 8 programs.
RULING
Code of Virginia Sec. 58.1-609.8(40) provides an exemption from the retail sales and use tax for:
-
- From July 1, 1995, through July 1, 1999, food, food products, and services sold to residents under a Department of Housing and Urban Development-approved meal plan by a nonprofit organization exempt from taxation under Sec. 501 (c)(3) of the Internal Revenue Code and receiving federal grant assistance under the Department of Housing and Urban Development Section 8 programs and from July 1, 1998, through June 30, 1999, tangible personal property purchased for use or consumption by a nonprofit organization exempt from taxation under Sec. 501 (c)(3) of the Internal Revenue Code and receiving federal grant assistance under the Department of Housing and Urban Development Section 8 programs.
The department has previously ruled that one of the Taxpayers qualifies for the sales and use tax exemption provided under Code of Virginia Sec. 58.1-609.8(40) for food, food products, and services sold to residents under a HUD-approved meal plan.
Based on the information provided and a review of the Taxpayers' Articles of Incorporation, each Taxpayer is a nonprofit organization exempt from taxation under Sec. 501 (c)(3) of the Internal Revenue Code. The Taxpayers receive federal grant assistance under the HUD Section 8 programs. Therefore, the Taxpayers satisfy the requirements under the statute and qualify for the exemption for tangible personal property purchased for their use or consumption.
The exemption is effective through June 30, 1999. As verification of the Taxpayers exempt status, a copy of this letter should be furnished to each vendor from whom exempt purchases are made. You will not receive a separate tax exempt number and such a number does not need to be furnished to your vendor in order to make purchases exempt of the tax.
If you have any questions regarding this matter, you may contact ***** the department's Office of Tax Policy at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/17871F
Rulings of the Tax Commissioner