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?
Get Free Tax Rate Tables
