Does a nonprofit sales tax exemption apply to both purchases and sales?

Sometimes. The scope of a nonprofit sales tax exemption depends on the specific statutory provision that applies. Some exemptions apply to both sales and purchases, while others apply only to sales or only to purchases.

For example, sheltered workshops or supported employment providers for people with intellectual disabilities may be exempt from sales tax on both purchases and sales of tangible personal property and digital products.

Meanwhile, certain nonprofits that sponsor fundraising events may only be exempt from sales tax for sales of tangible personal property, admissions, and parking fees.