REMINDER – It’s a New Calendar Year for Certain Nonprofit Organizations

It’s a new calendar year for nonprofit organizations allowed to hold two one-day, tax-free sales during a calendar year. A qualified organization that has obtained sales tax exemption from our office must designate in its records before a sale which two, one-day sales will be exempt during a calendar year. This may require careful planning and coordination for organizations operating on a fiscal year basis.

For example, PTAsPTOs and other school groups often plan events based on school years rather than calendar years. When planning fundraising activities (PDF, 412KB) for a new school year, the school groups should verify the number of tax-free fundraisers conducted by the organization during the prior school year that occurred during the current calendar year.

*Originally published in Tax Policy News; a monthly newsletter about Texas tax policy at http://www.window.state.tx.us/taxinfo/taxpnw/tpn2013/tpn1301.html#issue3.