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Old 06-05-2014, 03:12 PM
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Non-profit support business

I am with a small non-profit religious organization located in New York State. We have a construction company that is the main source of support of the non-profit. It is my understanding, that in NY there is a sales tax on profits from construction even if you are a non-profit.

I recently read an article about LLC's that stated that if you register in a different state than the state in which you operate, that you would only pay taxes in the state in which you registered.

I'm wondering if that would apply to the NY sales tax on construction as well?

Thanks.



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Old 06-06-2014, 08:22 AM
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Originally Posted by benj View Post
I am with a small non-profit religious organization located in New York State. We have a construction company that is the main source of support of the non-profit. It is my understanding, that in NY there is a sales tax on profits from construction even if you are a non-profit.

I recently read an article about LLC's that stated that if you register in a different state than the state in which you operate, that you would only pay taxes in the state in which you registered.

I'm wondering if that would apply to the NY sales tax on construction as well?

Thanks.
I am with a small non-profit religious organization located in New York State. We have a construction company that is the main source of support of the non-profit. It is my understanding, that in NY there is a sales tax on profits from construction even if you are a non-profit.==============>>>>>>>>>>>>> Many people are under the impression that just because you have 501(c)(3) status, you automatically qualify for sales and use tax exemption. Having 501c3 status allows you to apply for sales tax exemption, but does not grant it. We understand that the process of getting Sales and Use Tax exemption is complicated ;only 25 states now allow exemption from sales tax



I recently read an article about LLC's that stated that if you register in a different state than the state in which you operate, that you would only pay taxes in the state in which you registered.=========>>>>>>>>>>>I guess it depends; for example, if you move to Washington, D.C., a charitable nonprofit organization must be physically located in D.C. and file an application to qualify for a sales-tax exemption. Once an exemption application is approved and a Certificate of Exemption is issued, exemptions from sales tax are granted only if the purchases, purchaser and the method of payment are in accordance with the requirements to receive an exemption from sales tax. In other words, the purchases must relate to a charitable purpose, by a person associated with the tax-exempt organization and the payment must be made by that organization. If all of these requirements are not met, then sales tax may be imposed, even when an organization has a legitimate sales-tax exemption and a certificate to prove it. This is true in D.C. and nearly all states that offer an exemption from sales tax to nonprofit organizations.

I'm wondering if that would apply to the NY sales tax on construction as well?============>>>>>>>>>>>>>>as it varies from state to state, I guess the best way is to contact a specific city dept of Rev for more accurate info on it; a state sales tax exemption is much less certain and requires a careful reading of each state’s tax code and regulations



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