Question: Making purchases for a 501c3 PTO

Our PTO had just received non-profit status. When making PTO-related purchases, what documents do we need to show to a business so we do not need to pay TEXAS sales tax? We have the official letter from IRS giving us the 501c3 status but I'm wondering if there's some other document that need to have. Do you have samples? Thank you!


Asked by Inconditus

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Advice from PTO Today

Rose H writes:
Hey there!
Checked in with our content team and wanted to share this: We've just published a post on ou nonprofit vs. tax-exempt status and what it all means. Link below! In short, a 501(c)(3) grants exemption from federal income tax; to be exempt from state sales tax, you will need to check with the local agency that handles nonprofit status -- probably the corporations department, and it is likely your group will need to be incorporated within their state in order to become exempt from state taxes. (Although there might be some businesses that consider the 501(c)(3) determination letter good enough.)

Here's the link:
http://www.ptotoday.com/pto-today-articles/article/8270-tax-exemption-and-nonprofit-status-what-ptos-should-know

Good luck!
Rose


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