12/22/2016

Reminder for congregations...your congregation is exempt from sales tax!

Churches are exempt from Ohio Sales Tax

You may not realize it, but many businesses, including gas, electric, and telephone, automatically charge Ohio sales tax. As a church and a 501 (c)(3) exempt organization, your church is exempt from the Ohio sales tax. Section 5739.02 (B)(12) of the Ohio Revised Code reads, in pertinent part,

“The tax does not apply to the following:...

          …Sales of tangible personal property or services to churches, to organizations exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986,…”

Per the Ohio Department of Taxation, if an exempt organization has been charged sales tax, the organization needs to contact the company that charged the sales tax and request a refund.

You can download the Blanket Exemption Certificate at http://www.tax.ohio.gov/Forms.aspx, Form STEC B.

Also, check to be sure your church has on file a copy of the IRS Group Exemption Letter that recognizes the ELCA and its subordinate organizations as being exempt from Federal Income Tax under Section 501 (c) (3) of the Internal Revenue Code. You should have on file a copy of the ELCA Certification of Federal Income Tax Exemption Under Section 501(c)(3).  You should be able to get copies of both from the ELCA Office of the Secretary. More information can also be found at http://www.elca.org/About/Churchwide/Office-of-the-Secretary/Legal-Issues/Taxes. There is a link in the main article to a PDF file that includes instructions and forms to the IRS ruling.

As always, be sure to check with your church’s legal counsel.