Rule 90.
(1) Sales
of tangible personal property and services to properly qualified nonprofit
entities for their own use and consumption, but not for resale, are
exempt.
(2) The claimant shall meet
the following requirements for exemption:
(a)
Qualify as a school, hospital, home for the care and maintenance of children or
aged persons, and other health, welfare, educational, charitable, or benevolent
institutions and agencies.
(b) Be
operated by an entity of government, a regularly organized church, religious or
fraternal organization, a veterans organization, or a corporation incorporated
under laws of the state.
(c) The
income or benefit from the operation shall not inure, in whole or in part, to
any individuals or private shareholders, directly or indirectly.
(d) The activities of the entity or agency
shall be carried on exclusively for the benefit of the public at large and not
limited to the advantage, interests, and benefits of its members or any
restricted group.
(3)
When an exemption is claimed, the seller, at the time of the transfer of the
tangible property or services, shall retain, as part of the seller's records,
an executed exemption certificate which reads as follows:
CERTIFICATE IS TO BE EXECUTED WHEN TAX EXEMPT SALE IS MADE
TO AN EXEMPT INSTITUTION OR AGENCY
The undersigned hereby certifies that the item or items
being purchased are to be used or consumed in connection with the operation of
the exempt institution or agency named in the space provided below, and that
the consideration for this purchase moves from the funds of the designed
institution or agency. In the event this claim is disallowed, the transferee
promises to reimburse the seller for the amount of tax involved.
Date __________________
_________________________________________________
Name of exempt institution or agency
_________________________________________________
Signature and title of person making
certification
(4) The
department does not issue so-called "exemption numbers." If there is some
question regarding exemption status, the claimant may contact the department
for a ruling.
(5) Nonprofit
entities engaged in a retail sales activity of any kind are required to have a
sales tax license. The fact that the receipts or profits from such sales may be
used for otherwise exempt purposes is not material.
