Ruling 90-21

Sales by Nonprofit Organizations
Sale by Agent

This Ruling has been obsoleted in part by AN 2000(8)

Connecticut General Statute 12-412(8) provides a sales and use tax exemption for sales to nonprofit charitable and religious organizations. However, sales by nonprofit organizations are not exempted from the sales and use tax. You should also be aware that Conn. Agencies Reg. 12-426-17(6) allows nonprofit organizations to have two one day events in any calendar year without charging sales tax.

The nonprofit craft centers must apply sales and use tax to the sales of crafts or other artwork. The craft centers may purchase crafts and artwork for resale without payment of sales and use tax by issuing valid resale certificates to the artists. However, nonprofit craft centers that sell merchandise on consignment must apply a sales tax on the consignment fees that they charge the artists, because consignment services are considered to be sales agent services pursuant to section 12-407(2)(i)(U) of the Connecticut Statutes as amended by Public Act 89-251.

LEGAL DIVISION

February 13, 1990