Definition Of Veterans' Organizations For Sales And Use Tax

Sales and use tax - definition of "charitable organization". For purposes of state sales and use tax, a "charitable organization" includes veterans' organizations as defined in federal law, but such organizations are limited to those that sponsor special events, meetings, or other functions in the state that are not part of the organization's regular activities in the state. In other words, a veterans' organization may not claim the charitable organization sales and use tax exemption for its regular activities in the state. This limitation is not found in the federal tax law granting veterans' organizations federal tax exempt status. The act makes state law consistent with federal law and treats veterans' organizations registered under section 501 (c)(19) of the federal internal revenue code the same way as veterans' organizations registered under section 501 (c)(3) of the federal internal revenue code.
(Note: This summary applies to this bill as enacted.)