Sales Tax

Sales taxes vary greatly across states & provinces, and even among local jurisdictions!
Be sure to follow the guidance applicable to your local area

In general, Rotaract Clubs and Districts are required to pay sales tax on their purchases, unless there is a specific exemption described below. There are also some situations in which Clubs may be required to collect sales tax, such as raffles or certain types of fundraisers.


Utah offers a Sales Tax Exemption to 501(c)(3) organizations, but there are specific procedures limiting when & how it may be used

Charitable organizations in Utah are exempt from paying sales tax if the purchase is made for a charitable purpose. However, only 501(c)(3) organizations are eligible and must obtain an exemption letter from the Utah State Tax Commission.

In order to be exempted from paying sales tax at time of purchase, a written agreement must be signed between the buyer & seller. Otherwise, refund requests are submitted afterwards to the Tax Commission.

If your Club is planning a charitable activity (such as a service project or a fundraiser), consider these options:

  • Ask your sponsor Club if they have a 501(c)(3) Foundation

  • Partner with Big West Rotaract Foundation! Email for additional information & a copy of our Utah State Tax Commission letter will be provided if appropriate.

Oregon, Alaska, and Montana

Oregon, Alaska, and Montana are among five states that do not have sales tax.


Nonprofits are required to pay sales tax on purchases.

Rotaract Clubs are not required to collect sales tax for fundraising activities when the the proceeds of the fundraising are used to further the club's goals, or in support of another nonprofit organization. Additionally, organizations with gross receipts under $12,000 are not required to register with the Washington Department of Revenue.

Read more from the Washington Department of Revenue here.


Although Rotaract Clubs and Districts are not exempt from Transaction Privilege Tax on their purchases, sales will generally be exempt (under category 8 of Procedure TPP 00-4)

Read more from the Arizona Department of Revenue here.


All purchases made by Rotaract Clubs & Districts are subject to sales tax (paid by the Club to the retailer). Clubs are also responsible for collecting sales tax on certain sales (such as fundraisers) and may be required to obtain a temporary seller's permit from the California Department of Tax & Fee Administration.

Refer to the guide below for more information:

California Department of Tax & Fee Administration - Tax Guide for Nonprofits

British Columbia

Refer to the guide below from the CRA:

GST/HST Information for Non-Profit Organizations