Saturday, April 09, 2011
Tax Exemption
I have been selling my disability resource books for several years now, and something I have seen a few times is confusion by non-profit agencies that think they do not have to pay sales tax because they are "tax exempt."
The short answer to that is - No.
Tax exempt status means that the agency is exempt from income tax and property tax... but not sales tax. There are lots of web sites that explain this. Just do a search for" non-profit tax exemption status".
Also, Some agencies that have purchased books from my web store also wanted me to fill out a W-9 form for taxes.
The short answer for that one is also - No.
A W-9 is for sub-contractors. If you were contracting me to write a special manual or training for your agency - something I would happily consider - then I would need to fill out a W-9 so you could issue me a 1099 form at the end of the year, showing how much you paid me. But you do not need a W-9 to make a purchase from a store.
I hope this helps. One agency got mad at me and cancelled their book order over these issues. I asked if they insisted that WalMart fill out a W-9 when the agency made a purchase at their store, and that was the last I heard from them. That was too bad for their staff and clients who might have benefited from the information in the books.
# posted by John @ 9:36 AM 
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If it is a government agency (State, Federal.. OMH, OMR for example) you do not collect sales tax. Walmart, Michaels and every other store, including online like Sax, Blick and Triarco all have to follow this as well. Many of these stores will issue a card to ease future transactions.
When you refuse and a purchase is made the employee either is reprimanded or has to pay the sales tax out of their own pocket.
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When you refuse and a purchase is made the employee either is reprimanded or has to pay the sales tax out of their own pocket.
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