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Nonprofit Sales Tax Law Updates. HB 354 Explained

Here is a brief summary of the tax law updates, from Christine Koenig of DMLO. This is current as of April 16, 2019.

*   The House Bill included an emergency clause whereby the sale tax changes for nonprofit organizations is effective upon signing, which was March 26, 2019.
*   501c3 and other nonprofit organizations (such as other 501c organizations – c4, c5, c6, etc.) are exempt from sales tax on the following:
*   Admissions
*   Privilege of using facilities or participating in events
*   Fundraising event sales
*   So no more sales tax to be collected on –
*   Fundraising events, including the tickets or sponsorships
*   Live or silent auction items
*   Admissions or memberships which include admissions
*   Tickets to theatre or performances
*   There are no refunds of previously collected and remitted tax.
*   You must file your sales tax report and remit any sales tax collected through March 26, 2019.
*   You can close your sales tax account, but only if you are certain you will not be subject to sales tax for other purposes (i.e. you have a retail operation like a gift shop, alcohol sales)

Download a PDF of Christine’s presentation on the sales tax law updates here.