Expert: Arthur Naman - 5/1/2009

Question
I am on the board of directors of a 501(c)3 organization in New York.  We are a tax-exempt not for profit corporation.  If we sell artwork as a fund-raiser do we have to charge sales tax?

Answer
NOTE:  I have no experience with New York sales tax returns.

From http://www.nixonpeabody.com/publications_detail3.asp?ID=2398   

New York State erodes exempt organization exceptions to sales and use tax

In New York State, charities long enjoyed a broad (but not complete) exemption from sales and use tax on both purchases and sales. Effective September 1, 2008, that exclusion has changed.  Certain fund-raising and other exempt activities that were previously exempt are now subject to state sales tax.

In short, fund-raising and other exempt activities that were previously exempt are now subject to sales tax.

Y'all should check with whoever is preparing your state sales tax return. Also, check with the new York Dept of Taxation and Finance.

NOTE:  I have no experience with New York tax laws.