Removing the sales tax from an eligible organization or agency

Overview

The following organizations might qualify for tax-exempt status*: non-profits**, religious organizations, state and local government, hospitals, and educational institutions. . Also, any sales to the U.S. . government and its agencies will normally be exempt from sales tax.

Purchases made by tax-exempt organizations must be made by the exempt organization only. . Under no circumstance can any individual or other agent purchase any items on a tax-exempt basis.

In order to qualify for tax exemption, the purchaser must either:

  • Provide a tax exemption certificate, or
  • Provide a letter that states the name of the agency and a written statement regarding the exemption from sales tax, including the tax exempt ID number. . The letter should also be dated and signed by the person authorized to issue the letter of exemption.

Any written request or other documentation in support of a tax-exempt transaction will be reviewed immediately so that an appropriate tax adjustment can be made. . if the documentation you furnish does not meet our compliance needs, you will be notified.

Please provide tax exempt documentation using one of the following methods:

*Although many states permit sales tax exemption for some or all of these organizations, these four states do not: California, North Carolina, South Carolina, and Washington. . For additional information concerning your qualification as a tax-exempt organization for sales tax purposes, please contact your state's Department of Revenue or Board of Equalization.

** Non-profit organizations seeking sales tax exemption must follow the above procedure. . This will avoid unnecessary delays in processing your sales tax exemption. . The use of a Federal form or other document which refers to an organization as tax exempt under IRC Section 501(c)(3), etc., will not satisfy our documentation needs for sales tax purposes.

KB ID# 1009654
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11/22/2009 2:03:09 PM