HF 91: Relating to the state sales and use tax by expanding nonprofit exemptions on the state sales and use tax to include all nonprofit entities exempt from federal taxation

What it does

This bill relates to the state sales and use tax by expanding nonprofit exemptions on the state sales and use tax to include all nonprofit entities exempt from federal taxation under section 501 of the Internal Revenue Code (IRC).3(29). The bill exempts from the sales and use tax the sale of tangible personal property or specified digital products sold, or services furnished, to a nonprofit entity whose income is exempt from federal taxation under section 501 of the IRC. The bill expands current law and makes a sale by any such nonprofit exempt from the sales and use tax if the entire profits from the sale are used for an educational, religious, or charitable purpose.

In plain words

1. January 23, 2023Filed in the House and sent to the Ways and Means committee