Nonprofit Sales Tax Exemptions in Flux

Several state legislatures are reconsidering sales tax policy, and treatment of nonprofits is being revisited. Maine’s Taxation Committee unanimously recommended adopting the Governor’s budget proposal to expand the sales tax base to many types of services, but agreed to pull museums out of the expanded list. The Committee did not weigh in on summer camp tuition but a separate committee could consider clarifying that tuition would not be subject to the tax. The Pennsylvania Governor’s budget calls for imposing a sales tax on tickets to nonprofit museums, cultural centers, historical sites, zoos, and other nonprofit educational institutions. Legislation in North Carolina would significantly reduce the sales tax break for nonprofits in the state. See related article in the sidebar. Theater and musical performances would be exempted. Oklahoma, on the other hand, recently exempted nonprofits from sales tax on gala tickets and auction items from fundraising events.