45 IAC 2.2-5-59 - Not-for-profit organizations to improve skills of members; sales
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 59.
(a) The
state gross retail tax shall not apply to sales by qualified not-for-profit
organizations of tangible personal property of a kind designed and intended to
improve the skill or professional qualification of members of the organization
for carrying on the work or practice of their trade, business or profession and
not used in carrying on a private or proprietary business.
(b) The gross receipts from sales of tangible
personal property by a qualified not-for-profit organization are exempt under
this rule only if:
(1) The tangible personal
property is sold exclusively to members and is designed and intended to improve
the skill or professional qualification of such members; and
(2) The organization is not carrying on a
private or proprietary business with respect to such sales.
(c) Designed and intended to
improve the skill of professional qualification. The property sold to members
of the organization must be designed and intended to improve the skills of such
members.
-EXAMPLE-
(1) Sales
by a qualified not-for-profit medical society to its members of technical
booklets which provide medical information are exempt from tax. These technical
booklets are intended to improve the professional qualifications of the
members.
(2) Sales of meals at
medical society meetings are taxable because the meals are provided for the
convenience of the organization and its members. Such sales are taxable even
when served in conjunction with a meeting where the technical booklets
described in (1) of this section are sold.
(3) A professional society of certified
public accountants publishes and sells technical booklets to students who are
not members of the professional society. The sales are taxable because this
exemption is limited to sales to members.
__________
(d) Qualified not-for-profit organizations.
This regulation [45 IAC 2.2] applies only to not-for-profit
organizations which are qualified not-for-profit organizations. For example,
sales of instructional booklets on golf techniques by a country club are
taxable. A country club is a predominantly social not-for-profit organization
and not a qualified not-for-profit organization.
(e) Definitions. Refer to Regulation
6-2.5-5-25(a)(010)(2) [ 45 IAC 2.2-5-55(b) ] for the
definition of a "qualified not-for-profit organization".
Notes
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