Qualifying nonprofit organizations may apply for an exemption from collecting Louisiana state sales tax on certain fundraising activities by submitting Form R-1048, Annual Application for Exemption from Collection of Louisiana
Sales Taxes at Certain Fundraising Activities.
The exemption may apply to:
- Parking fees
- Admission charges
- Outside-gate admission charges
- Sales of tangible personal property made by the nonprofit organization at an approved fundraising event
The exemption is not automatic. Your organization must submit Form R-1048 and receive approval from the Louisiana Department of Revenue (LDR) before relying on the exemption.
Who May Apply?
The exemption may be available to qualifying nonprofit organizations that are:
- Domestic
- Civic
- Educational
- Historical
- Charitable
- Fraternal
- Religious
The organization must qualify as a domestic nonprofit organization exempt under the Internal Revenue Code. After payment of necessary event-related expenses, the proceeds must be used to support the organization’s qualifying purpose or another eligible educational, charitable, religious, or historical-restoration purpose.
Important
Federal nonprofit or 501(c)(3) status does not, by itself, create a general exemption from Louisiana sales and use tax. Form R-1048 applies only to qualifying fundraising activities approved by LDR.
Before You Apply
Submit Form R-1048 as early as possible, but no later than 30 days before the first fundraising event covered by the application.
Incomplete applications may be delayed or denied. Before submitting the form, make sure you have:
- The organization’s Federal Employer Identification Number
- The organization’s name, address, purpose, and contact information
- A description of each fundraising event
- The location and dates of each event
- An explanation of how the proceeds will be used
- Information about any promoter, business, or individual sharing in the proceeds
- Information about similar products or services sold by commercial businesses in the event’s trade area
How to Apply
- Download and complete Form R-1048.
- Include all fundraising events planned for the calendar year.
- Use the supplemental event page when the application covers more than one event.
- Sign and date the application.
- Email the completed form to: [email protected]
Adding or Changing an Event
Form R-1048 is an annual application. Include all known fundraising events when submitting the original application.
If your organization later adds or changes an event:
- Complete a supplemental event page.
- Include a copy of the original Form R-1048 application.
- Submit the supplemental request at least 30 days before the new or changed event.
An approved exemption applies only to the events and dates listed in the application.
What the Exemption Does Not Cover
Approval of Form R-1048 does not:
- Exempt the organization from sales or use tax on its own purchases.
- Create a general sales tax exemption for all activities of the organization.
- Exempt regular commercial ventures, such as bookstores, restaurants, gift shops, commercial flea markets, or similar activities competing with retail businesses.
- Exempt independent vendors participating in the fundraising event.
- Apply to events that were not listed in the approved application.
Participating Vendors
Approval of the nonprofit organization’s application does not extend to independent vendors participating in the event.
The nonprofit organization must notify participating vendors that they are required to collect and remit Louisiana state
sales tax on their taxable transactions.
Events That May Not Qualify
An organization may not qualify if:
- It endorses a candidate for political office or is otherwise involved in political activities.
- A promoter, individual, or business is entitled to share in the event’s gross proceeds.
- The event is intended to generate a profit for a promoter.
- The organization is not the genuine sponsor of the event.
- The activity is a regular commercial venture rather than a qualifying fundraising event.
