New Indiana Sales Tax Rules for Nonprofits and Churches Go Into Effect on July 1, 2022
The Indiana State Sales Tax rules have changed in regard to sales tax collection for schools, and not-for-profits that include, admission, concessions, fundraising, events, etc. In an effort to provide and educate our MV community on these important changes and the impact they will have on our school and not-for-profit organization’s activities MVEF is happy to host a FREE workshop presentation on October 27, 2022, from 9-10 AM at the Mt. Vernon Alumni Center thanks to cch+a MVEF education partner, Mr. Jon A. Becker.
Indiana is changing the circumstances under which nonprofit organizations, including churches, are exempt from collecting sales tax. The new rules are effective July 1, 2022.
Through June 30, 2022, sales by nonprofit organizations carried on for 30 or fewer days in a calendar year and engaged in as a fundraising activity are exempt from sales tax.
As of July 1, 2022, sales of no more than $20,000 in a calendar year engaged in as a fundraising activity are exempt from sales tax. Once a nonprofit organization passes the $20,000 threshold, it must collect state gross retail tax on subsequent sales for the remainder of the calendar year.
As with the prior rule, the $20,000 threshold applies to each calendar year. Therefore, sales counted toward the $20,000 threshold reset on January 1 every year. Consequently, a nonprofit organization or church may be required to collect sales tax in one year (because it exceeds the $20,000 threshold in that year), but may not be required to collect sales tax in the next year.
For addtional information or to RSVP Contact Renee Oldham at Renee@MtVernonFoundation.org
Jon A. Becker, Partner cch+a
Jon Becker represents clients in matters associated with construction projects, retirement, health, and other employee benefit plans, labor and employment law, compliance and regulatory affairs, homeowners associations, nonprofit organization, tax matters, government bonds, and other business organizations. He consults in areas such as ERISA, PPACA, HIPAA, human resources, and nonprofit and exempt organizations.
Jon received his bachelor’s from Anderson University with concentrations in Economics and Business Administration. Prior to law school, he worked in the Madison County Council of Governments and Prosecutor’s offices. While at Indiana University School of Law in Indianapolis, he participated in Moot Court, Program on Law and State Government, and worked as an intern in the Indiana Secretary of State’s Office in the Business Services and Securities divisions. He later completed Butler University’s MBA program with a concentration in Finance.
https://www.cchalaw.com/our-people/jon-a-becker
