Once granted by the Comptroller, can a state tax exemption be revoked?
Yes, an entity’s state tax exemption may be revoked under certain circumstances. If the state tax exemption is based on an entity’s federal exemption, the revocation, withdrawal, or loss of the federal exemption automatically ends the state tax exemption. See IRS Publication 78 to verify the federal exempt status of a 501(c)(3) organization, or call them at (877) 829-5500. A comptroller’s representative may request additional information that is necessary to ascertain the continued validity of the organization’s exempt status. If the comptroller determines that an organization is no longer entitled to its exemption, then the comptroller will notify the organization. An exempt organization must notify the Comptroller in writing if there is a change in its purpose or activities that causes the organization to no longer qualify for the exempt status. An organization must notify the comptroller in writing of a revocation, withdrawal, or loss of exemption when the organization no longer qua
