Texas Non-Profits Allowed Two Tax-Free Sale Days

Texas – The state of Texas allows certain non-profit agencies to host two one-day, tax-free sales per year. Each sale may last up to 24 hours. Approved organizations are allowed to host the sales on back to back days, for up to 48 hours. In order for the organization to qualify, it must be a religious, charitable, educational organization, or be exempt from federal taxation. Any organization not included in the Texas Comptrollers Exempt Entity Database must apply for an exemption.

Qualifying exemptions include items valued for less than $5,000. In order for an item over $5,000 to qualify for the sales tax exemption, the item must be something made or produced by the hosting organization or if it was a donated item.

The non-profit organizations are only allowed to accept pre-orders and payments as long as the items are delivered, or the items are from a 3rd party vendor received on the day of the scheduled sale.

For additional information, please go to https://comptroller.texas.gov/taxes/tax-policy-news/.

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts (DDH LLC) specializes in sales/use tax audit consulting and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At DDH LLC we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.

For sales/use tax compliance questions or audit-related concerns, we are here to help!

Contact us at Davis Davis & Harmon LLC or call 972-488-5000

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