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FAQ Articles

Are Churches and nonprofit organizations required to pay sales tax on purchases made for their own use?

Purchases made by churches, religious, charitable and nonprofit organizations for their own use are subject to tax. The tax-exempt status nonprofit organizations have for income tax purposes does not exempt them from paying sales tax on purchases for their own use. State law does allow an exemption for churches purchasing bibles, prayer books, hymnals and religious textbooks.

Goods purchased for resale for fund raising purposes by a religious, charitable or nonprofit group may be purchased tax-free. The organization should provide the retailer a properly completed Certificate of Resale if they have a sales tax permit or a letter of authorization obtained from the Sales Tax Compliance Section  allowing the goods to be purchased for resale.

nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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FAQ Articles

Are Churches and nonprofit organizations required to pay sales tax on purchases made for their own use?

Purchases made by churches, religious, charitable and nonprofit organizations for their own use are subject to tax. The tax-exempt status nonprofit organizations have for income tax purposes does not exempt them from paying sales tax on purchases for their own use. State law does allow an exemption for churches purchasing bibles, prayer books, hymnals and religious textbooks.

Goods purchased for resale for fund raising purposes by a religious, charitable or nonprofit group may be purchased tax-free. The organization should provide the retailer a properly completed Certificate of Resale if they have a sales tax permit or a letter of authorization obtained from the Sales Tax Compliance Section  allowing the goods to be purchased for resale.

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