Sales Tax Exemption Proposed for North Carolina Nonprofits

Tax relief could be on the way for nonprofits in North Carolina. State lawmakers are proposing an exemption for nonprofits from charging sales tax for tuition or registration fees related to educational events. The exemption would succeed the nonprofit sales tax refund system for most 501(c)(3) nonprofits in the Tar Heel State, and it would lessen administrative burdens some organizations face. In addition, separate legislation could exempt most nonprofits in North Carolina from paying sales and use tax when purchasing goods and services.

The North Carolina Center for Nonprofits has created a memo breaking down the proposed sales tax exemption. Download the memo here. If you need further assistance concerning how your nonprofit could benefit from the sales tax exemption, contact Cherry Bekaert’s Nonprofits industry group.