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Starting a Nonprofit Organization: Apply for State Sales Tax Exemption

Once the all important IRS Determination Letter (the letter stating your organization is now recognized as a tax exempt entity) has been received, it is now time to apply for the Indiana state sales tax exemption.

The application for the sales tax exemption is NP-20A. It is a very simple application, consisting of a single page. The form asks for basic information regarding the organization, such as contact information, the predominant purpose of the organization, and whether the organization will sell personal property for more than 30 days in a year. There are only four check-the-box questions in the main section of the form.

The NP-20A serves a dual purpose. Not only is it used for applying for tax-exempt status, but it also is a request for an Indiana Taxpayer Identification Number. Once the hard work of getting federal tax-exempt status is done, Indiana makes it very easy to finish the job.