Nonprofit Tax-Free Renewal Certificates

The tax and audit teams at Crosslin & wanted to make all of its not-for-profit customers and colleagues aware of a recent memo released by the Tennessee Department of Revenue regarding nonprofit tax-free renewal certificates. You can read the memo below in its entirety. As always, if you have any questions, please do not hesitate to contact us at (615) 320-5500. Thanks and we appreciate your business!

The Department of Revenue has completed a periodic review of all registered nonprofit organizations eligible to purchase tangible personal property and taxable services tax-free. These entities have been issued new exemption certificates with an effective date of July 1, 2015. This new certificate is valid through June 30, 2019.

Effective July 1, 2015, exemption certificates issued with an effective date prior to July 1, 2015 are no longer valid for tax-exempt purchases.

A copy of the new nonprofit tax-exempt certificate must be placed on file as verification of tax-free sales on or after July 1, 2015. For audit purposes, copies of previously issued certificates must be retained as documentation of purchases made prior to July 1, 2015.

Out-of-state organizations with 501(c)(3) tax-exempt status from the Internal Revenue Service need only present a copy of their 501(c)(3) exemption to purchase goods and services tax-free. In-state 501(c)(3) organizations must present a Tennessee non-profit exemption certificate when making purchases.