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Are items taken out of resale inventory and donated to a nonprofit organization subject to sales and use tax?

April 26, 2017donated Inventory items nonprofit organization resale sales Subject tax

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Are items taken out of resale inventory and donated to a nonprofit organization subject to sales and use tax?

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A. Yes. The tax is required to be paid on the cost price of the donated item. If the item is donated by a manufacturer, the tax must be paid on the fair market value.