Exemption From TN Sales Tax
Q. Pursuant to the newly enacted SSOFAA a school support organization such as a band or booster club may become a state chartered charitable entity. The amended act does not require them to seek 501(c)(3) status from IRS. If the booster club becomes a state chartered charitable organization and does not become a 501(c)(3) entity can it apply for and receive an exemption from Tennessee state and local sales tax? (Go to Item 7 Under Tools: IRS And TN State for a copy of the TN Sales Tax Exemption Form)
A. Response From John Harvey, State of Tennessee Taxpayer And Vehicle Services Division
No. The sales tax law requirements for exemption from sales tax have not changed. There are many organizations that are state chartered charitable entities that do not qualify for sales and use tax exemption. Simply being a nonprofit or charitable organization does not grant tax exempt status. An organization must still be named in the sales tax law as eligible for exemption in order to receive the tax exempt status.
John Harvey, Taxpayer and Vehicle Services Division
Any opinion from tax law or regulations given herein is believed to be a correct interpretation. However, the opinions cannot constitute a revenue or letter ruling pursuant to the provisions of Tenn. Code Ann. Sect. 67-1-109.
Sam Jackson
Post a Comment
Reader Comments