New tax exemption for Virginia charities
Starting July 1, Virginia will join 36 other states in offering a sales tax exemption for purchases made by charities.
This is a significant win for Virginia charities, which have long been struggling to make ends meet. The exemption will save charities an estimated $10 million per year, which can be used to provide more services to those in need.
The exemption was included in a budget bill that was passed by the Virginia General Assembly and signed into law by Governor Ralph Northam.
To qualify for the exemption, charities must be registered with the Virginia Department of Taxation and have a valid sales tax exemption certificate.
The exemption applies to all purchases made by charities, including purchases of goods, services, and equipment. However, the exemption does not apply to purchases of food or beverage for consumption on the premises.
