Nonprofits will no longer have to charge sales tax on transactions on or after March 26, the date Gov. Bevin signed HB 354 resolving the questions and confusion on the issue.
Due to an emergency clause in this legislation, sales of admissions and tangible property sales at fundraising events by all nonprofit groups and governmental organizations are now exempt from sales tax for transactions.
These nonprofit, governmental, and civic organizations will no longer charge sales tax on these types of transactions as specified in Sections 28-29 of HB 354.
All of these non-profit organizations should discontinue charging sales tax to their customers and benefactors immediately.
Please note that this new exemption does not apply to sales by retail businesses such as bookstores and thrift stores owned or operated by nonprofit or governmental groups.
The Department of Revenue is available to provide additional guidance as needed and will soon www.taxanswers.ky.gov
Please submit specific questions by email to dorsalesusetaxanswers@ky.gov or call 502-564-5170.
