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Collecting sales tax on items sold?

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Collecting sales tax on items sold?

I would like to know if 501(c)(3) organizations must charge tax on merchandise SOLD. I understand that they do not pay tax on merchandise purchased.

Even if a charitable organization is exempt from paying state sales tax on items purchased, it will ordinarily have to collect state sales tax on items sold. There may be some specific exemptions, such as isolated sales for short-term fundraisers, that apply only to charities, but in general a charity will ordinarily have to collect and remit state sales tax on items sold to the same extent that a for-profit seller would have to. Check with your state Department of Revenue.

Wednesday, May 28, 2008
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