The Governor has signed House Bill 354, effective immediately, which includes relief on sales tax regulations for Kentucky nonprofits.
House Bill 354 exempts organizations from collecting sales tax on most of the sales of admissions to events and activities sponsored by nonprofits, and sales at fundraising events.
What does this mean for you?
- Admissions charged by nonprofit educational, charitable, or religious institutions exempt under Section 501(c)(3) are exempt from sales tax;
- Admissions charged by nonprofit civic, governmental or other nonprofit organizations that are not exempt under Section 501(c)(3) are exempt from sales tax;
- Fundraising event sales made by nonprofit educational, charitable, or religious institutions are exempt from sales tax;
- Sales related to the operation of a retail business – including but not limited to thrift stores, bookstores, or any other operation in competition with a for-profit retailer – are taxable.
Any sales tax that you have already collected must still be remitted, and no refunds of taxes collected and paid in prior periods will be allowed.
We will communicate further information as it becomes available.