Taxable Sales


Any nonprofit organization that makes taxable sales must collect and pay tax on the sale unless one of the following applies:

  • The state’s fundraising exemption applies (see Fundraising Sales)
  • The sales qualify for another exemption

Taxable sales include:

  • Gift shop sales at a nonprofit museum
  • Sales of used furniture, appliances, and other items operated by a nonprofit organization
  • Sales of books, manuals, CDs, and other taxable literature to its members on a regular basis

When you purchase items for resale (inventory items), do not pay tax on them. Instead, give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.