Massachusetts sales tax exemption application

What is exempt from Massachusetts sales tax?

Tangible products are taxable in Massachusetts , with a few exceptions. These exceptions include clothing costing less than $175 , most non-restaurant food and groceries, several health care and sanitation items, prescribed medical devices, and periodicals.

How do I apply for tax exempt status in Massachusetts?

To qualify, you must register your nonprofit online with the Massachusetts Department of Revenue. You must supply a copy of your nonprofit’s IRS exemption letter. To obtain an exemption from Massachusetts sales taxes , you must apply for a Certificate of Exemption (Form ST-2) from the Department of Revenue.

How do I register for sales tax in MA?

You can easily acquire your Massachusetts Sales and Use Tax Registration Certificate online using the MassTaxConnect website. If you have quetions about the online permit application process, you can contact the Department of Revenue via the sales tax permit hotline or by checking the permit info website .

Are 501c4 exempt from sales tax?

In most states, 501(c)(3) entities must pay sales tax on their purchases and charge sales tax on the items they sell. However, some states allow certain types of nonprofit organizations a special exemption from sales tax . The exemption is generally limited to the purchase of items used in their exempt purpose.

What services are subject to sales tax in Massachusetts?

Goods that are subject to sales tax in Massachusetts include physical property, like furniture, home appliances, and motor vehicles. Prescription medicine, groceries, gasoline, and clothing are all tax -exempt.

Is toilet paper taxed in Massachusetts?

Massachusetts exempts “health care items” including tampons, diapers, and hearing aids. In fact, all but seven states tax toilet paper —when states without sales taxes are factored in—but “ toilet paper tax ” outrage doesn’t garner nearly as much social media momentum as “tampon tax ” petitions do, and perhaps rightly so.

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Are state agencies tax exempt?

Government entities are frequently asked to provide a tax – exempt number or “determination” letter to prove its status as a “ tax – exempt ” or charitable entity. Governmental units, such as states and their political subdivisions, are not generally subject to federal income tax .

Do governments pay sales tax?

Direct purchases by the federal government are exempt from the retail sales tax , but purchases by others, whether with federal funds or through a reimbursement arrangement, are fully subject to the retail sales tax .

What is a public charity in Massachusetts?

Charities provide significant benefits to Massachusetts residents as well as people across the country and throughout the world. These organizations operate solely for the benefit of the public , and the Attorney General’s Office (AGO) is responsible for protecting the public’s interest in their activities.

How much is sales tax in Massachusetts on a car?

If the sale is made by a motor vehicle dealer or lessor who is registered, the sales tax rate is 6.25%. The use tax applies to all other types of transfers of title or possession where the vehicle transferred is stored, used, or consumed in Massachusetts .

What taxes do you pay in Massachusetts?

Massachusetts has a flat income tax rate of 5.05%, as well as a flat statewide sales tax rate of 6.25%. The state’s income tax rate is only one of nine states that levy a flat rate.

Is food taxed in MA?

Massachusetts imposes a sales tax on meals sold by or bought from restaurants or any restaurant part of a store. Generally, food products people commonly think of as groceries are exempt from the sales tax , except if they’re sold as a meal from a restaurant part of a store.

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What is the difference between 501 c 3 and 501 c 4?

Under Internal Revenue Service rules, a 501(c ) 3 is a non-profit for religious, charitable or educational purposes. Donations to 501 ( c ) 3 groups are tax-deductible. A 501(c ) 4 is a social welfare group and can engage in more advocacy and lobbying.

Who qualifies for tax exempt status?

To be tax – exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.

Is a 501c4 tax deductible?

Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer’s business.

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