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Does Non-Profit Thrift Shop collect sales tax?

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    Does Non-Profit Thrift Shop collect sales tax?

    Does a Thrift Shop have to collect sales tax on the goods they sell? The shop, in Pennsylvania, is run by a 501c3 charity to help raise funds. The items sold are not purchased, but are items that were donated to the thirft shop. thanks for any comments you may have.

    #2
    I suppose it depends on state law. Tax-exempt status applies to the entity, not the customer. In Minnesota, I think I remember paying sales tax on purchases from our local Goodwill store.

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      #3
      I found this through google for TX, read down a little:




      In NY, clothing under (approx) $110 each item is exempt from sales tax.

      This post is for concept only
      Last edited by BOB W; 10-25-2007, 12:47 PM.
      This post is for discussion purposes only and should be verified with other sources before actual use.

      Many times I post additional info on the post, Click on "message board" for updated content.

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        #4
        Sales Tax

        Based on this information from the Dept of Revenue website http://www.revenue.state.pa.us/reven...A=299&Q=209058 , I would say yes they do. I have a non-profit client who runs a gift shop and they must collect and remit the tax. Make sure they check the list of what is and is not taxable, as I believe most all clothing sales are non-taxable - so if they only sell clothing they might be OK. The listing is located here http://www.revenue.state.pa.us/reven...A=190&Q=174555

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          #5
          It's not that simple.

          In NY, clothing under (approx) $110 each item is exempt from sales tax.
          In NY, clothing under (approx) $110 each item is exempt from the STATE portion (4%) of the sales tax. It still may be subject to the locality portion (2 to 5%) of the sales tax, which varies by county and/or city. And of course we have to be careful of what is defined as clothing ... for humans only, not part of a costume or athletic garb, no pearls or semi-precious stones, purchased but not rented formal wear, etc.

          Also remember that still bottled water or fruit juice is subject to neither sales tax nor the bottle deposit, but carbonated bottled water or juice is subject to both.

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            #6
            Taxable items

            In Texas food is exempt if purchased for off-premise consumption, but to complicate matters you have to know what "food" means. A cookie is food, but candy is a "confection" and candy is taxable.

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              #7
              Ty

              Thank you for these excellent comments....any others are most welcome. Sounds like we may have a situation where some items are taxable and some are not.

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