Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 210 - RETAIL SALES AND USE TAX › Section 23VAC10-210-310 - Churches

Current through Register Vol. 40, No. 24, July 15, 2024
A. Definitions.
The following words and terms when used in this section shall
				  have the following meanings unless the context clearly indicates
				  otherwise:
"Carrying out the work of the church and its related
				  ministries" means engaging in activities that communicate or spread the
				  religious teachings and practices of a church.
"Church" means a nonprofit religious organization, regardless
				  of faith, that would be considered a church under the standards promulgated by
				  the Internal Revenue Service for federal income tax purposes (i) that has been
				  specifically recognized by the Internal Revenue Service as being exempt from
				  taxation under § 501(c)(3) of the Internal Revenue Code or (ii) whose real
				  property is exempt from local real property taxation under § 58.1-3606 of
				  the Code of Virginia. The term "church" includes any departments, regular
				  schools of religious education, and other activities of a church that are not
				  separate legal or business entities, including kindergartens, elementary and
				  secondary schools, preschools, nurseries, and day care centers. The term
				  "church" does not include broadcasting television organizations, such as
				  evangelical television and radio ministries, missionaries, political action
				  committees (PACs), affiliated entities separately incorporated from a nonprofit
				  religious organization, and camps and conference centers. However, a limited
				  exemption is available to camps and conference centers as set forth in
				  subsection F of this section.
"Church department" means any administrative division of a
				  church used in carrying out the work and related ministries of the church. This
				  term includes, but is not limited to, boards; committees; councils; men's,
				  women's or youth ministries; and outreach ministries of the church.
"Public church building" means a building, the primary
				  purpose of which is to house the regularly scheduled worship services of the
				  church and those adjacent offices and buildings at a single location in which
				  activities are conducted to carry out the work of the church and its related
				  ministries.
"Regular school of religious education" means any program
				  instituted by a church to provide regularly scheduled classes on the teaching
				  of the church and includes, but is not limited to, Sunday school, catechism,
				  Hebrew school, vacation Bible school, and Bible study classes.
"Religious worship service" means regularly scheduled church
				  services and includes, but is not limited to, weddings, bar mitzvahs, bat
				  mitzvahs, baptisms, christenings, funerals, and special services conducted
				  during religious holidays, when conducted at the public church building.
B. Overview. This section
				addresses the sales and use tax exemption provided to churches pursuant to
				§ 58.1-609.10 of the Code of Virginia using Form ST-13A, Certificate of
				Exemption. In general, a church is entitled to an exemption from the sales and
				use tax on certain purchases of tangible personal property for use in:
1. Religious worship services by a
				congregation or church membership while meeting together in a single
				location;
2. Libraries, offices,
				meeting or counseling rooms, kitchens, or other rooms in the public church
				buildings used in carrying out the work of the church and its related
				ministries, including kindergarten, elementary and secondary schools,
				preschools, nurseries, and day care centers;
3. Recording and reproducing church services;
				and
4. Caring for or maintaining
				property owned by the church.
Churches also have the option of using the general nonprofit
				  entity sales tax exemption provided for under § 58.1-609.11 of the Code of
				  Virginia. In order to obtain the general nonprofit entity exemption, the church
				  must apply to the Department of Taxation and receive a Retail Sales and Use Tax
				  Certificate of Exemption. This section is applicable only to the self-issued
				  exemption for churches pursuant to subdivision 16 of § 58.1-609.10 of the
				  Code of Virginia using Form ST-13, Certificate of Exemption. It does not apply
				  to the general nonprofit entity sales tax exemption provided for under §
				  58.1-609.11 of the Code of Virginia.