Sales/Franchise Tax Exemption

Getting Sales Tax Exemption is Great Stewardship!

Did you know that more than 25 states allow churches and ministries to apply for Sales and Use Tax exemption? 

Obtaining the sales tax exemption is like getting an increase in your church's budget. When you are exempt, the percentage of tax that you normally pay (without exemption) now stays in your church's checkbook. When you compare our small fee for completing the application to the amount of money your church will save year after year, you will be pleased with the value of our services. You will wonder why you did not do this sooner! 

In most cases, we can prepare an application for you and have it ready for state approval in 14 days. The state will then go over the application and will either have additional inquiries that need to be answered or they will grant the sales tax exemption.  In either case, we work with the application until your church or ministry is granted a certificate of exemption. 

Many ministries confuse sales tax exemption with 501(c)(3) status

We receive calls on a regular basis from ministries that are under the impression that because they have a tax Id number and 501(c)(3) status, that they are also exempt from Sales and Use tax. Unfortunately, that is not the case. In most states you have to formally apply for this exemption using the state's application process, which follows a strict code as set by the legislature, in order to receive the exempt status. We understand that the process of getting Sales and Use Tax exemption is complicated and that is why we offer it as a service. Our goal is to help you achieve maximum stewardship over the finances that God has placed into your hands.

What About Franchise Tax Exemption? (California)

Did you know that the state of California does not allow churches to apply for Sales and Use Tax exemption? Plus, they require all churches and ministries to pay an annual franchise tax of at least $800.00 per year. The good news is that you can apply to become exempt from the Franchise Tax. To do so, the church or ministry must formally apply to the Franchise Tax Board. Without official approval, the church or ministry will have to pay the annual tax or else they will be declared administratively dissolved by the state. 

If you have not applied, please give us a call and we will prepare the complete application for you; plus we will do all of the follow up work required to get you approved.

Call us toll free at 877-494-4655.