Are 501(c) organizations exempt from state taxes?
Not automatically. However, the Tax Code recognizes certain federal exemptions for exemption from franchise tax and sales tax. If your organization has received exemption from federal taxation under 501(c)(3), (4), (8), (10) or (19), it qualifies for exemption from sales tax and, if incorporated, franchise tax. Exemption from franchise tax is possible if your organization received a federal exemption under 501(c)(2), (5), (6), (7), (16), or (25).
