Can a Non-Profit Organization use sale tax receipts as revenue?

Question

Can a non-profit organization in ohio collect sales tax from a service that it provides to the community but keep the fee as fundraising revenues for the organization?

I'm pretty sure that you can't do this but I have an old college buddy who bet me $100 bucks that you can and that their are other non-profit orginizations who does this as well. I am telling him that you can't do that and he seems rather convinced that you can!

Someone please clarify this and help me win the $100 bucks.

Answer 1

In most states they are required to collect sales tax for items they sell and send that to the taxing agency.

Answer 2

It will depend on the state, but as a general rule it seems extremely unlikely.

Answer 3

Your proof will be finding the state statute.

Either the sales tax is required to be collected or it is not.  If it *is* collected (even if it wasn't supposed to be), it *must* be turned over to the taxing authority.

Answer 4

He owes you $100.  If a non-profit sells something that is taxable in their state, they are required to have a state tax ID and collect the tax, but they DO have to remit what they collect to the state, not keep it.

Tell him to call the state revenue dept and ask them, if he won't believe you.

Answer 5

They are not allowed to do so, legally.

Can they do so?  Well, you "can" do many illegal things.  For example, you can murder someone.  I am not clear on whether this bet is about ability or legality.  

As many mothers say, "You can, but you may not."