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Taxable vs. Tax Exempt CO's

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If your Scout Unit is sponsored by a church and you only sell popcorn to church members, it's probably tax exempt.  Selling to the general public?  Technically sales tax needs to be collected.

 

 

Under the Department of Revenue’s regulations for sales by exclusively charitable, educational, and government organizations, the organization is permitted to have two "occasional sales" per year where the selling is allowed to be done tax-free. See 86 Ill. Adm. Code 130.2005:

 

  1. Under this second exception, examples of exempt sales are infrequent sales of cookies, doughnuts, candy, calendars or Christmas trees by Scout organizations or by other exclusively charitable organizations or by exclusively religious organizations. 

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Under the Department of Revenue’s regulations for sales by exclusively charitable, educational, and government organizations, the organization is permitted to have two "occasional sales" per year where the selling is allowed to be done tax-free. See 86 Ill. Adm. Code 130.2005:

 

  1. Under this second exception, examples of exempt sales are infrequent sales of cookies, doughnuts, candy, calendars or Christmas trees by Scout organizations or by other exclusively charitable organizations or by exclusively religious organizations. 

 

And the question remains, what about units that are not charitable or religious in nature that hold a BSA charter?  That was the original posting question.  Not only are they to collect sales tax, they are expected to pay sales tax on purchases they make and they should be paying income tax on the money they take in.  Everything over expenses is profit because their CO is a for-profit legal entity. 

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Moderator's Note:

 

www.scouter.com is not a source of tax or legal advice.  Consult with your local Council's General Counsel or the attorney for your Chartered Partner for legal advice that applies to your specific unit situation.

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Moderator's Note:

 

www.scouter.com is not a source of tax or legal advice.  Consult with your local Council's General Counsel or the attorney for your Chartered Partner for legal advice that applies to your specific unit situation.

What was it Beavah used to say?  Don't take legal advice from some furry critter on the internet?

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what ever happened to Beavah, anyway?

 

I hated his writing style, but he had some good stuff to add from time to time....

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