Florida Taxes Non-profit Gift Shop Sales

Wednesday, October 29th, 2014

 
 
A gift shop.
Share
Link
Florida
General

The Florida Department of Revenue issued a Technical Assistance Advisement stating that sales by 501(c)(3) organizations are not automatically exempt from sales tax.

The taxpayer is an at-risk youth home ("Home") and is a 501(c)(3) entity. The Home is an extended ministry of a Church but operates as a separate, non-religious, entity. The Home has an onsite gift shop. The Home plans to open a thrift shop where it will sell donated items to the general public. Also, the thrift shop will occasionally purchase "heavily discounted" items for resale. The thrift shop, gift shop, and Home are all the same entity.

A 501(c)(3) entity is a non-profit charitable organization. Florida exempts sales and donations to 501(c)(3) entities when the purchased or donated item is used by the 501(c)(3) entity in its customary services. Florida law also exempts sales by religious organizations and institutions that benefit minors. The exemption is not automatic. An entity must apply for a certificate of exemption as a religious organization or institution that benefits minors.

The Home is only categorized as a 501(c)(3) entity. As the Home is a separate legal entity from the Church, the Church's religious organization status does not extend to the Home. Therefore, sales to the Home are exempt, but sales by the Home are not. The Home could apply to be a religious organization or institution that benefits minors and amend its certificate, and then sales by the Home would be exempt.

https://revenuelaw.state.fl.us/LawLibraryDocuments/2014/09/TAA-119064_14A-022%20Redacted%20_%20Summary.pdf


About TTR

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.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...

Iowa Supreme Court Determines Taxable Carpentry Services...

Wednesday, January 9th, 2019 -The Iowa Supreme Court has recently addressed the taxability of various installation services. The taxpayer wa...

Tax Applies to Metallurgical Coke in Illinois

Monday, January 7th, 2019 -Illinois recently ruled that use tax was due on purchases of metallurgical coke. The taxpayer was a business t...