With your IRS Determination Letter in hand, make sure you familiarize yourself with
requirements for recognizing your nonprofit’s tax-exempt status. This is an area
vary state-by-state. Many states issue their own tax-exempt certificate that can be
used for sales
and use tax purposes, but it may require application and periodic renewal.
To file to obtain exemption from state income tax:
Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Vermont minimum corporate tax. No application or notification is necessary.
More information: Vermont Department of Taxes
To file to obtain exemption from state sales tax:
Vermont nonprofits that have received their IRS determination letter are automatically exempt from paying state sales tax. They must present Form S-3: Vermont Sales Tax Exemption Certificate for Resale and Exempt Organizations to sellers.
Many Vermont nonprofit organizations are exempt from property taxes.