Sales Tax Charitable Exemption Certificate Renewal Extended from 5 Years to 10 Years

Chapter 64H, Sec. 6 of General Laws of Massachusetts provides for exemption from the sales tax for the IRC Sec. 501(c)(3) entities. The entity can qualify for such an exemption when purchased tangible personal property or services are used in the conduct of such religious, charitable, educational or scientific enterprise. However, such entity has to obtain a certification from the Commissioner stating that it is entitled for such exemption, and the vendor has to keep a record of the sales price of each such separate sale, the name of the purchaser, the date of each such separate sale and the number of such certificate.

The commissioner has to notify a tax-exempt entity of certificate expiration 90 days prior the expiration date, and the entity has to obtain a renewal in order to entitled to a continuance of such exemption beyond the expiration date of any existing certificate.

Section 49 of Chapter 262 of Acts of 2004 extends the sales tax certificate of exemption renewal from five to ten years.

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