How to Claim a Sales Tax Exemption

Each state offers certain organizations the ability to purchase items without having to pay sales taxes. To qualify for and claim such an exemption, you or your organization must fall within a certain criteria. Check with your state's tax and finance department to see if you can benefit from such an exemption.

Instructions

Difficulty: Moderate

1. Determine whether or not you qualify for the sales tax exemption. Visit your state's tax and finance department to become familiar with the qualified listing of organizations. If you prefer, you can call your tax and finance department and ask them to mail the list and supporting information to you.
2. Download and complete the sales tax exemption form. Whether you download it or receive it by mail, complete the form in accordance with the instructions. If you have concerns or questions regarding how to complete the form, either call or visit the website for additional information. Most applications have a number you can call if you have questions.
3. Present the completed form when purchasing sales tax exempt items. To claim the sales tax exemption you must present the completed form when purchasing items tax-free.
4. Retain a copy for your records. Always keep a copy with your accounting records. You may need it when it's time to file your taxes.

Tips & Warnings

• Some states have different sales tax exemption forms for different types of organizations while other states use one generic form. Complete the form that applies to your business or organization.