| exemption or the four-year statute of
limitations, whichever is more recent, and August 31, 2009.
(E) See §3.325 of this title (relating to Refunds
and Payments Under Protest) for more information about how to claim
a refund and §3.339 of this title (relating to Statute of Limitations).
(h) Sales by an exempt organization.
(1) An exempt organization that sells taxable items
must obtain a sales tax permit and is responsible for collection and
remittance of tax on all sales of taxable items that the organization
makes, unless otherwise provided by this subsection or unless such
sales are otherwise exempt from the tax. See §3.293 of this title
(relating to Food; Food Products; Meals; Food Service), §3.299
of this title (relating to Newspapers, Magazines, Publishers, Exempt
Writings), and §3.298 of this title (relating to Amusement Services).
(2) A religious, educational, charitable, or eleemosynary
organization, or an organization exempt under IRC, §501(c)(3),
(4), (8), (10), or (19), and each of its bona fide chapters, may have
two one-day tax-free sales or auctions each calendar year. During
a tax-free sale or auction lasting only one day, the organization
is not required to collect sales tax on the sales price of taxable
items sold for $5,000 or less. Additionally, a taxable item may be
sold tax-free during a one-day tax-free sale or auction regardless
of price if the item is manufactured by the organization or is donated
to the organization and is not sold to the donor.
(A) One day is a consecutive 24-hour period. If a designated
tax-free sale or auction exceeds a consecutive 24-hour period, the
organization or chapter may not hold another tax-free sale or auction
during that calendar year. An organization or chapter may hold the
two tax-free sales or auctions consecutively, but the two tax-free
sales or auctions by that organization or chapter cannot exceed a
maximum of 48 consecutive hours in a calendar year.
(B) The organization may employ an auctioneer to conduct
the sale or auction and pay the auctioneer a reasonable fee not to
exceed 20% of the gross receipts.
(C) If two or more exempt organizations or chapters
jointly hold a tax-free sale or auction, each is considered to have
held a tax-free sale or auction during that calendar year. Each exempt
organization that participates in a joint tax-free sale or auction
may hold one additional tax-free sale or auction during that calendar
year.
(D) An organization described by subsection (b)(11)
of this section and which is granted an exemption may hold 10 tax-free
sales or auctions during a calendar year.
(i) Each tax-free sale or auction may continue for
not more than 72 hours.
(ii) The storage, use, or consumption of a taxable
item that is acquired from a qualified organization at a tax-free
sale or auction and that is exempted from the sales tax under this
paragraph is exempted from the use tax until the item is resold or
subsequently transferred.
(iii) If an organization described by subsection (b)(11)
of this section and which is granted an exemption jointly holds a
tax-free sale or auction with one or more other exempt organizations,
the tax-free sale or auction is considered to be one of the organization's
10 tax-free sales or auctions during that calendar year.
(3) Fundraisers. Exempt entities engaged in fundraising
activities in conjunction with for-profit entities are not the sellers
of any taxable items and do not need to be permitted to collect and
remit tax on such sales. See §3.286 of this title (relating to
Seller's and Purchaser's Responsibilities, including Nexus, Permits,
Returns and Reporting Periods, and Collection and Exemption Rules).
(4) Sales by agencies and instrumentalities of the
federal government are subject to tax, and the agencies and instrumentalities
must collect and remit tax unless the collection of tax is specifically
prohibited by federal law. If the collection is prohibited by specific
federal law, the purchaser of the taxable item shall be liable for
reporting and paying the tax directly to the state.
(5) Sales of governmental publications, records, or
documents.
(A) When a governmental body is required to furnish
a copy of any document under the Open Records Act, the transaction
is not considered the sale of a taxable item. Sales tax is not due
on any fee charged by the governmental body for furnishing one or
more copies, regardless of whether the copies are certified or the
fee is established by statute, ordinance, public official, or state
agency.
(B) Sales tax is not due on the fee charged by a governmental
body for furnishing a copy or copies of a document not open to public
inspection to a person who is authorized to obtain a copy or copies
of such document. For example, sales tax is not due on the fee charged
by a college for furnishing a student's academic transcript to the
student or on the fee charged by the Department of State Health Services
for furnishing a person a copy of the person's birth certificate.
(C) Unless such sales are otherwise exempt, sales tax
is due on sales of regular publications, records, or general information
by a governmental body, even though such publications, records, or
information may be open or available to the public by statute. For
example, textbooks sold by a state university and magazine subscriptions
sold by a state agency are taxable. See §3.299 of this title.
(D) Sales tax collected by state agencies must be remitted
in accordance with comptroller accounting requirements.
(i) Organizations that do not qualify for exempt status.
Examples of organizations that cannot qualify for exempt status include
professional groups, certain mutual benefit or social groups, and
political, trade, business, bar, or medical associations. However,
certain sales by certain organizations may be exempt. For information
on exempt sales by senior citizens' organizations, student organizations
affiliated with a college or university, or nonprofit animal shelters,
see §3.316 of this title (relating to Occasional Sales; Joint
Ownership Transfers; Sales by Senior Citizens' Organizations; Sales
by University and College Student Organizations; and Sales by Nonprofit
Animal Shelters).
(j) Diplomatic tax exemptions.
(1) Sales tax exemptions provided to foreign diplomatic
and consular personnel in the United States are governed by international
and federal law as administered by the United States Department of
State's Office of Foreign Missions.
(2) Types of exemption cards.
(A) Mission tax exemption cards. Mission tax exemption
cards can only be used for official purchases by a foreign consulate
or embassy. All purchases must be made in the name of the mission
and paid for by a mission check or credit card, not by cash or personal
check. The person whose name and photo appear on the card is responsible
for ensuring the accuracy of the exemption, but does not need to be
present when purchases are made in the name of the mission.
(B) Personal tax exemption cards. Only the person whose
photo appears on the front side of the card is permitted to use it
to purchase the exempted items that are identified on the card. Personal
tax exemption cards are not transferable and may not be used by others.
(3) Procedures for retailers.
(A) Diplomatic tax exemption cards must be presented
to the seller at the time of sale for the exemption to apply. If the
exemption is not claimed at the time of sale, the comptroller will
not refund tax paid on an item which qualifies for a diplomatic tax
exemption. The card must be signed.
(B) To document the sale of an item subject to a diplomatic
tax exemption, a retailer should retain a copy of the sales invoice
or contract that bears the identification number appearing on the
diplomatic tax exemption card or should make a photocopy of the front
and back of the card.
(C) Certain diplomatic exemption cards are limited
to what and how much may be purchased tax free or may require a minimum
purchase before the exemption can be claimed. This information is
contained on the diplomatic exemption card itself. Retailers who make
sales to persons with cards that require purchases to exceed a certain
dollar limit should include only those taxable items that are purchased
in the same transaction to determine if the appropriate level has
been reached. Purchases made in separate transactions may not be added
together to reach minimum exemption levels. Neither type of card identified
in paragraph (2) of this subsection can be used to obtain the tax
free sale of utilities.
(k) The Alabama-Coushatta, Kickapoo, and Tigua Native
American tribes.
(1) The purchase, lease, or rental of a taxable item
to a tribal council or a business owned by a tribal council of these
Native American tribes is exempt from sales tax. An exemption certificate
or purchase order from the tribal council is sufficient proof of the
exempt sale.
Cont'd... |
