Sales by Charitable Organizations Generally Exempt in Arkansas

Friday, May 11th, 2018

Charitable organization employee  selling item to public.
Exempt Entities

The Arkansas Department of Finance and Administration recently addressed the taxability of sales made by a nonprofit church organization.

Arkansas exempts sales of tangible personal property by churches and other charitable organizations. However, the exemption does not apply when the organization is engaged in business for profit, thus competing with for-profit businesses. Sales do not compete with for-profit businesses when (1) they are made by members of the organization and not by a franchisee or licensee, (2) the proceeds go exclusively to the nonprofit organization, and (3) the sales are not continuous and are not held more than three times per year.

Previously, Arkansas had a fourth requirement that the "dominant motive" of most of the purchasers had to be making a charitable contribution, not purchasing an item. However, that requirement was recently removed from the law and no longer applies. Organizations

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Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

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