Retail Sales and Use Tax 3-51.1

School Board of the City of Virginia Beach
Regulation 3-51.1

BUSINESS AND NONINSTRUCTIONAL OPERATIONS

Retail Sales and Use Tax

All schools are expected to abide by Chapter 6 of Title 58.1 of the Code of Virginia governing Retail Sales and Use Tax and any applicable rules and regulations governing retail sales and use tax as issued and administered by the Commonwealth of Virginia Department of Taxation, including the following provisions:

1. "The Tax does not apply to school lunches sold and served to pupils and employees of schools and subsidized by government or to school textbooks sold by a local board or authorized agency thereof."

2. "The Tax does not apply to tangible personal property purchased for use, consumption, or sale at retail by an elementary or secondary school conducted not for profit, or Parent Teacher Association or other group associated with an elementary or secondary school conducted not for profit for use in fund-raising activities, the net proceeds (gross receipts less direct expenses) of which are contributed directly to the school or used to purchase certified school equipment, and certified school equipment purchased by such groups for contribution directly to the school."

   For purposes of this regulation, "certified school equipment" means that equipment for which the Parent Teacher Association or other group has received certification from the school, that it will accept a donation of equipment. The Certification provided by the school shall be in accordance with regulations promulgated by the Tax Commissioner." (Form ST-13)

3. "The Tax does not apply to the sale of class rings, school photographs, and other fund-raising programs from which an elementary or secondary school conducted not for profit receives a commission or the net proceeds after the payment of vendors and other direct expenses."
4. "Charges for meals, catered events, lodging, and other accommodations such as meeting or conference rooms, are subject to the Tax when paid for by the state or local government or public institutions of learning, or employees of such, regardless of whether the purchases are made pursuant to required official purchase orders. Room setup charges in connection with the rental of rooms or conference rooms are also taxable. Setup charges not in connection with room rentals are not subject to the Tax."

Regulatory Authority

Code of Va., § 58.1-609.4. Retail Sales and Use Tax Educational Exemptions.

Department of Taxation VR 630-10-45, Retail Sales and Use Tax: Governments § 1.2.

Approved by Superintendent: August 14, 1993
Revised by Superintendent: July 19, 1994