I would start with the state's website and go from there. In our state, we only have to show a copy of our IRS Determination letter, and fill out a very basic form we can download off the internet. We don't have another formal application process, thankfully. That said, there's fine print that governs the exemption and not everything is tax free. I've heard of another state, not sure which one, that has a couple of specific days of the year when organizations are sales tax exempt. Purchases your group makes for ITSELF might be exempt from state sales tax, but that doesn't necessarily mean that your customers (the ones who buy your books or your giftwrap) are exempt from paying sales tax.
Don't take it from us, since this varies so much from state to state. Good luck. Try this link: www.boe.ca.gov/pdf/pub18.pdf
Oh boy, it seems I overlooked something when filling out the application for State Tax Exempt status. I saw a reply by JHB that says:
Also at the state level you want to see what it takes to get your organization exempt from SALES tax, and state income tax if you have that. (IRS is FEDERAL INCOME Tax). To be tax exempt in your state, you may have a simple form to file. You might have to be a 501(c)(3) first.
I didn't know PTO's could also apply to become exempt from Sales Tax. We are charged sales tax at all book fairs and catalog fundraisers.
Anyone know how to become sales tax exempt in California? Are any other groups here exempt from sales tax?
