DATE ISSUED: 09/20/00
Notice to Non-Profit Organizations of
"501(c)(3)" Sales Tax Exemption on Purchases
Effective January 1, 2001, non-profit organizations that have been determined by the Internal Revenue Service (IRS) to be exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code (IRC) will qualify for a Florida sales tax exemption on their direct purchases.
Sales Tax Exemption Applies To Direct Purchases Only
The sales tax exemption is available only for direct purchases by the holder of a valid Consumer's Certificate of Exemption (Form DR-14). Purchases made with personal funds on behalf of the organization are taxable, even if the purchaser presents the dealer with the organization's exemption certificate and states that he or she will be reimbursed by the organization. Only those purchases made with the non-profit organization's exemption certificate and the nonprofit organization's own funds will qualify as "direct" purchases entitled to the sales tax exemption.
To qualify for the new Florida sales tax exemption, your organization must obtain from the IRS a determination letter of exemption from federal income tax under section 501(c)(3), IRC. Please contact the IRS, not the Florida Department of Revenue, to obtain a determination of section 501(c)(3) status. A copy of the IRS determination letter must accompany a completed Application for Consumer's Certificate of Exemption (Form DR-5) submitted to the Florida Department of Revenue.
How To Obtain Florida Form DR-5
Application For Consumer's Certificate of Exemption
The Application for Consumer's Certificate of Exemption (Form DR-5) can be obtained in any of the following five ways:
1. Fax-on-Demand: Call 850-922-3676 using the telephone on your fax machine. Follow the instructions and request document number 1027.
2. Fax: Fax your request to 850-922-2208. Be sure to include the form number (DR-5) and provide your mailing address.
3. Telephone: Call the Florida Department of Revenue Distribution Center at 850-488-8422. Hearing or speech impaired persons should call the TDD at 1-800-367-8331 or 850-922-1115.
4. Mail: Mail your request to: Distribution Center, Florida Department of Revenue, 168A Blountstown Hwy, Tallahassee, FL 32304-3702.
5. Service Centers: Visit or call the Department of Revenue service center nearest you. Service center addresses and phone numbers are available in the government listing pages of your telephone directory, or on our Web site at: http://www.myflorida.com/dor/
How To Obtain Federal 501(c)(3) Status
The United States Internal Revenue Service is the only source for obtaining a determination letter of federal tax exempt status under section 501(c)(3). To obtain a determination letter, a non-profit organization must contact the IRS. If you believe that your organization qualifies or will qualify for such exemption, you should file an application with the IRS as soon as possible.
The forms used to apply for federal 501(c)(3) exempt status are IRS Form 8718, "User Fee for Exempt Organization Determination Letter Request," and IRS Form 1023, "Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code." IRS Publication 557, "Tax-Exempt Status for Your Organization," may also be helpful.
These forms and publications may be ordered from the IRS by telephone at 1-800-829-3676 or downloaded from the IRS Website at "http://www.irs.ustreas.gov/prod/forms_pubs/ index.html". Only the IRS will issue a determination letter of 501(c)(3) status. Please do not contact the Florida Department of Revenue to obtain such status.
FOR MORE INFORMATION
This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.
For forms and other information, visit our site at www.myflorida.com/dor. Or call Taxpayer Services, Monday through Friday, 8:00 a.m., to 7:00 p.m., ET, at 800-352-3671 (for Florida residents only), or 850-488-6800
Hearing- or speech-impaired persons should call our TDD at 1-800-367-8331 or 850-922-1115.
For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, 1379 Blountstown Highway, Tallahassee, FL 32304-2716.
To receive a fax copy of a form, call 850-922-3676 from your fax machine telephone.
Chapter 2000-228, L.O.F.
Section 212.08(7)(p), F.S.