Missouri – Donated Items Sold at a Nonprofit Organization’s Store are Not Taxable

SALT Report 1239 – The Missouri Director of Revenue ruled that a nonprofit organization’s sales of donated items in its store are exempt from Missouri sales tax under section 144.030.2(19) which states that “all sales made by or to religious and charitable organizations and institutions in their religious, charitable or educational functions and activities” are exempt from sales tax.

The taxpayer is a Missouri nonprofit corporation that builds affordable housing for low income families in Missouri.  They fund their projects through a store where they sell household items and materials used for home construction that have been donated to the organization. The store is operated by volunteers and all proceeds are used to pay for the operating costs of the store and any remaining income is used to further the taxpayer’s charitable functions.
The Director ruled that based on the above circumstances, the taxpayer met all the requirements for a non-profit organization and any sales made through the store are exempt from sales tax.
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