Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-57 - Not-for-profit organization; sales under 30 day rule

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 57.
(a) The
				state gross retail tax shall not apply to sales by any qualified not-for-profit
				organization of tangible personal property for not more than thirty (30) days
				during any calendar year for the purpose of raising money to be used for
				carrying on the not-for-profit purpose of such organization.
(b) In general, the gross receipts from sales
				by not-for-profit organizations are taxable. This subsection exempts from tax
				the gross receipts from the sale of tangible personal property by a qualified
				not-for-profit organization in connection with certain fund-raising activities
				as described in this regulation
[45 IAC 2.2]
.
(c) The gross receipts from the sale or lease
				of tangible personal property by a qualified not-for-profit organization are
				exempt under this subsection if the sales are made to raise money to further
				the not-for-profit purpose of the organization and if the sales are conducted
				for not more than thirty days during any calendar year. Such sales may be made
				by all qualified not-for-profit organizations. The tangible personal property
				sold need not be related to the qualified purpose of the organization, provided
				such receipts are expended to further the exempt purpose of the
				organization.
(d) Any organization
				which makes such sales for thirty-one or more days during any calendar year is
				a retail merchant and, therefore, is subject to the state gross retail tax.
				(Refer to Regs. 6-2.5-5-26(b)
[ 45 IAC 2.2-5-58 ]
for
				exemption of certain sales by qualified not-for-profit organization which are
				not predominantly social.)
(e)
				Sales conducted for not more than thirty days. Each day during which any
				selling activities are conducted constitutes a "selling day" for purposes of
				determining whether a qualified not-for-profit organization has conducted sales
				for more than thirty days during any calendar year. The solicitation,
				acceptance, or receipts of a sales order during any day during more than thirty
				days during any calendar year, then all gross receipts from all sales made
				during the year are subject to tax. For purposes of applying these rules, the
				thirty days need not be consecutive.
-EXAMPLE-
(1) A
				church conducts a bake sale each Sunday after services. All gross receipts
				including the receipts collected during the first thirty selling days are
				subject to tax because the selling activities are conducted for more than
				thirty days during the calendar year.
(2) A hospital's women's auxiliary solicits
				orders for cookies during a three-month period. Orders are accepted at the
				point of solicitation but the cookies are delivered on the last day of the
				three-month solicitation period. These sales are taxable. Selling activities
				are conducted for more than thirty days during the calendar year because each
				day during which an order is solicited constitutes a selling date.
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