Suggestions for Simplifying State Nonprofit Tax Laws

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Problem #1: The sales tax refund process is less efficient than a system of tax exemption

Problem #2: State law allows the IRS to arbitrarily deny sales tax refunds to some North Carolina nonprofits

Problem #3: Nonprofits are confused whether they need to collect and remit sales tax on their fundraising events

Problem #4: The exemption from sales tax on admission fees for “volunteer-only” nonprofits is confusing and unnecessary

Problem #5: North Carolina taxes some retirees for making charitable contributions

Problem #6: North Carolina businesses don’t get the full state tax benefit for their charitable contributions

Problem #7: Many North Carolinians don’t receive tax benefits for their charitable contributions


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