Is personal property purchased by a non-profit, charitable organization taxable?
Generally sales of tangible personal property to nonprofit organizations are subject to tax. If the tangible personal property is to be resold in the ordinary course of the Nonprofit’s business, the sale of the tangible personal property is not subject to tax. Also, if the tangible personal property is purchased by a non-profit, charitable organization that qualifies under 501(c)(3) of the United States Internal Revenue Code and the property is used in programs for mentally or physically handicapped persons and the programs are exclusively for training, job placement, rehabilitation, or testing the sale is not subject to tax. See our Non-Profit Organization Publication 501.
