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.