Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 210 - RETAIL SALES AND USE TAX › Section 23VAC10-210-32 - Adult care facilities

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				The following words and terms, when used in this section, shall have the
				following meanings, unless the context clearly indicates otherwise:
"Adult care residence" means an adult care residence often
				  referred to as a "home for adults" and defined in § 63.1-172 of the Code
				  of Virginia as any public or private place, establishment, or institution
				  operated or maintained for the maintenance or care of four or more adults who
				  are aged, infirm, or disabled and who are cared for in a primarily residential
				  setting, except (i) a facility or portion of a facility licensed by the State
				  Board of Health or the Department of Mental Health, Mental Retardation and
				  Substance Abuse Services, but including any portion of such facility not so
				  licensed, and (ii) the home or residence of an individual who cares for or
				  maintains only persons related to him by blood or marriage, and (iii) a
				  facility or portion of a facility serving infirm or disabled persons between
				  the ages of 18 and 21, or 22 if enrolled in an education program for the
				  handicapped pursuant to § 22.1-214 of the Code of Virginia, when such
				  facility is licensed by the Virginia Department of Social Services as a
				  child-caring institution under Chapter 10 (§ 63.1-195 et seq.) of Title
				  63.1 of the Code of Virginia, but including any portion of the facility not so
				  licensed. Included in this definition are any two or more places,
				  establishments or institutions owned or operated by a single entity and
				  providing maintenance or care to a combined total of four or more aged, infirm
				  or disabled adults.
"Adult day care center" means an adult day care center as
				  defined in § 63.1-194.1 of the Code of Virginia as a facility which
				  provides supplementary care and protection during part of the day only to four
				  or more aged, infirm, or disabled adults who reside elsewhere, except (i) a
				  facility or portion of a facility licensed by the State Board of Health or the
				  Department of Mental Health, Mental Retardation and Substance Abuse Services,
				  and (ii) the home or residence of an individual who cares for only persons
				  related to him by blood or marriage.
B. Purchases of tangible personal property by
				nonprofit adult care residences and nonprofit adult day care centers licensed
				by the Department of Social Services are exempt from the tax. Purchases of
				tangible personal property by all other adult care residences and adult day
				care centers, whether conducted for profit or not, are taxable unless otherwise
				exempt. If a vendor fails to collect the tax from a nonexempt entity, the
				entity must remit the tax to the department as provided in
				23VAC10-210-6030.
Any adult care residence or adult day care center, whether
				  for profit or nonprofit, which engages in selling tangible personal property
				  shall register as a dealer and collect and remit the tax to the department. For
				  example, sales of meals to residents or day care attendees for which a separate
				  charge is made and to nonresidents are taxable. However, meals furnished in
				  connection with services provided in caring for persons and the cost price of
				  which are included as a part of the charge for such services are nontaxable.
				  Purchases of tangible personal property for subsequent resale may be made
				  exempt from the tax under a certificate of exemption, Form ST-10.
Charges for the care and maintenance of persons by adult
				  care residences and adult day care centers are not taxable.
Statutory Authority: §
											58.1-203 of the Code of Virginia.