State requirements for exempt organizations vary from state to state.  In Texas, a charitable organization can apply for exemption from sales tax paid on purchases and franchise tax.  The application can vary depending on the type of organization.  The exemption is granted based on the organization’s federal exemption. 

Click here for a link to the guidelines for exempt organizations published by the Texas Comptroller of Public Accounts.

It is important to note that exempt organizations must collect tax on most of their sales.  There are a variety of exceptions to this, so you really must research what you are selling.  The state has a publication to guide exempt organizations on this matter. 

One last piece of information I will leave with you is that you can search for exempt organizations registered with the state at the Comptroller’s website at this link.

Call us if you need help with your tax exempt organization’s state requirements.