[35955] in APO-L
Re: [APO-L] APO exempt from excise taxes?
daemon@ATHENA.MIT.EDU (Ellen Kranzer)
Tue Sep 25 13:05:40 2007
Date: Tue, 25 Sep 2007 13:05:03 -0400
Reply-To: Ellen Kranzer <ccrazy@PANIX.COM>
From: Ellen Kranzer <ccrazy@PANIX.COM>
To: APO-L@LISTSERV.IUPUI.EDU
As someone already mentioned, whether or not 501(c)3 organizations are
exempt from various state and local taxes is a state issue. I know
there are places in the country where the appropriate forms have been
filed and either Alpha Phi Omega, Inc or particular chapters to have a
sales tax exemption, but I can't tell you off the top of my head where
those are. Many chapters are eligiable to use their school's sales tax
exemption and go that route.
Other issues with sales tax exemptions: 1. If a state grants a sales
tax exemption is just that an exemption from sales tax. The exemption
does not normally extend to other kinds of taxes -- hotel taxes,
excise taxes, soak the tourists taxes, etc.
2. Most states have specific paperwork requirements you must complete
in order to take advantage of the tax exemption and the trend is for
these requirements be be getting stricter. For example, you may need
to have filed a copy of your exempt certificate with the vendor in
advance. Or there may be a form you have to fill out for each puchase
in addition to giving the vendor a copy of the certificate
(Massachusetts is like this).
3. The tax exemption is for organizational purchases. Doing a simple
pass through where an organization buys something using its tax exempt
number and then is reimburse by the actually beneficiary of that
purchase is almost always prohibited. If organization or person gets
caught doing so there can be legal consequences for both the
organization and the individual. While it is possible that there might
be a legitamate way to design conference registration and housing fees
so that an organization can use it's tax exemption and pass some
savings on to the members, you need to look very carefully at the
laws that apply in that location.
Y.i.S.
Ellen Kranzer
Alpha Chi S'81
>Michael Gallagher <arbregen@GMAIL.COM> writes:
>
>Anyone know how APO can be exempt from excise taxes (I'm thinking sales
>taxes & luxury taxes, so we don't pay hotel tax, for example)? Would
>each chapter have to apply to each state (it seems that a 501(c)(3)
>organization must apply to each state), or could national or the regions
>do it? I'm thinking each chapter would apply to the states where their
>regional conferences are held and that 2 years is enough lead time to
>apply to the state holding the next national convention. This could be
>significant savings for members & chapters (members would reimburse the
>chapter if the chapter weren't footing the bill, so it is an
>organizational expense, especially if all in 1 room were
>advisers/Actives/pledges of 1 chapter).
>
>Michael Gallagher
>Zeta Sigma F'01
