This section contains resources for nonprofits regarding federal, state, local, and property taxes.
T-Shirt Sales–Go Directly to Jail (and Other Consequences of Selling Things): What Nonprofits Need to know about Texas Sales Tax Collection
Lots of nonprofits sell items like t-shirts, food, and publications. Just because a nonprofit organization is exempt from paying sales and use tax when it buys, leases or rents taxable items DOES NOT mean that the nonprofit organization is exempt from collecting taxes on its sales. The Legal Minute introduces the ideas for when to collect sales tax, how to collect it, and the consequences for failing to collect it.
Getting Tax Exempt Donations Without All the Paperwork: Fiscal Sponsorship as an Alternative to Forming a 501(c)(3) Corporation
Donors rarely give funds to organizations that do not have 501(c)(3) tax status. However, it can take a great deal of time and resources to comply with the requirements under Section 501(c)(3). When an organization is small, temporary, or is just starting out, it may make more sense for the group to explore alternatives to forming a new nonprofit corporation, such as fiscal sponsorship.
What Nonprofits Need to Know About the Tax Consequences of Economic Development Activities
This memo outlines how economic development activities can affect the status of a non profit.
New Markets Tax Credit
This article describes the New Markets Tax Credit and when a nonprofit could use it.
Federal Tax Requirements
State and Local Requirements
These files provide information on obtaining tax exemptions under state and local laws.
Sales Tax Exemption Form, in PDF format
This document is used to give to businesses to show exemption from sales and use taxes.
Franchise Tax Exemption
These forms are used to obtain a franchise tax exemption from the Comptroller.
Property Tax Exemption Form, in PDF format
This document is a form used to obtain a property tax exemption from the local Tax Assessor-Collector.