Education on helping your organization achieve sales tax exemption.
In some states, your organization is not automatically exempt from state sales tax, even after obtaining 501(c)(3) recognition from the IRS. You must file a separate application in order to receive state sales tax exemption.
If your organization makes taxable sales or purchases, obtaining Texas sales tax exemption will allow your nonprofit to allocate more funds towards pursuing its mission. However, learning state requirements, and preparing exemption applications correctly can take hours of staff and volunteer time.
It is a misconception that organizations that are exempt from federal income tax are also exempt from state taxes including sales tax. While each state varies, you typically must submit an application for sales tax exemption with the state once you receive your 501(c) determination letter.
You should budget 1-2 months for the state to process your application. If the application has any deficiencies, the state will return it unapproved, which creates costly delays.
Filing fees depend on your individual situation. We do our best to calculate your filing fees upfront and collect those fees today so we can get started. Your specialist will determine your exact filing fees and invoice additional fees if required.