Nonprofit Sales Tax Exemption
To comply with the new sales tax laws for marketplace facilitators, you, as the event director, can now indicate if your event is hosted by a nonprofit entity. Depending on the state in which the event is hosted your participants may not be required to pay sales tax.
Sales tax exemption by nonprofit is determined at the state level*. By including the necessary documentation in the event setup to prove nonprofit status, athleteReg will automatically determine whether or not to apply tax on specific items or event registrations and will automatically charge tax when required. Please keep in mind that your participants may still be charged tax on some portion of their transaction if your state's exemption does not cover all items.
For any tax collected, event directors do not need to remit this tax. athleteReg collects and remits on behalf of the event director, including non-profit event directors to the appropriate entity.
Changes to event setup
Once the event setup is complete, you will be taken to the Event Payment page. You will be asked to answer whether or not you are a tax-exempt entity if your state offers an exemption. You must complete this section for each event that is held by a tax-exempt entity.
Please note that if you do not see this section, tax is not collected in your state and you do not need to supply this information.
If you select “Yes,” you will be asked these follow up questions to prove nonprofit status. In addition to answering these questions, you will be asked to upload your 990 and state level nonprofit certificate. It is your responsibility to ensure that this information is up to date and accurate.
Once this section is completed it cannot be modified.
* While nonprofits are generally exempt from paying sales tax, if they sell entries to an event or associated merchandise, that nonprofit becomes a seller and the items they sell may be subject to sales taxes. A limited number of states do offer exemptions for nonprofit sellers.
