Missouri: Not-for-Profit Sales Are Exempt

Aug 21, 2013 | Gail Cole

Sales tax obligations for nonprofit organizations vary from state to state. Not all sales related with nonprofit organizations are exempt, as you might think. And contrary to expectations, items purchased for use by not-for-profits are sometimes subject to sales tax.

Yet as explained in a Missouri Department of Revenue, sales tax does not apply to items sold in a gift shop located in one not-for-profit charitable museum in Missouri. Proceeds from the sales go toward operational costs and educational outreach programs.

According to relevant Missouri law, "All sales made by charitable organizations and institutions in their religious, charitable or educational functions and activities" are exempt from sales tax.

So there it is.

Do you run a non-profit? How does your business manage sales tax?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Avalara Author

Gail Cole

Avalara Author Gail Cole

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.