Nonprofit Sales Tax Exemption - Simple or Complex?
“Can we get sales tax exemption?” Our law firm’s State Compliance and Tax Practice Group handles this question on a regular basis, usually for a specific state and increasingly with an eye toward online activity and multi-state legal compliance. Additional questions arise depending on whether the anticipated activities will involve purchases, sales, tangible goods, and intangible goods, as well as how and when such activities will be carried out. While this short question seemingly could be answered by a quick “yes” or “no” response, the answer usually warrants a more extensive and fact-specific legal evaluation. This article addresses key points of such evaluation for nonprofits, including purchases, sales, online activity, and guidance about state-specific dimensions.