Obtaining State Sales Tax Exemptions for Nonprofits

While often elusive, obtaining state sales tax exemptions can be fairly straightforward. For most states, the process includes a state’s individual application (many of which can be filed online) and provision of some additional documentation, including but not limited to:

• Articles of Incorporation.
• IRS Determination Letter.
• Bylaws for the organization.
• Financial statements, such as an IRS Form 990.

Some states, like Pennsylvania for example, have strict requirements so it is still important to check the criteria set by each individual state.

Depending on the scale of your organization’s purchases and expenditures in other states, it may be worthwhile to engage a professional service to manage these filings for you.

This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.