Tax Exemption for Charitable Organizations

Tax Exemption for Charitable Organizations

The Town of Parker’s laws regarding tax exemption may differ from other taxing authorities, and charitable organizations requesting tax exempt status for the Town of Parker are required to present evidence of exemption to specifically meet the Town of Parker requirements.

To obtain tax exempt status, a charitable organization must complete the Application for Certificate of Tax Exemption for Charitable Organizations (PDF) to request a determination by the Town of whether it qualifies for exemption from municipal tax under the Town of Parker Municipal Code (the “Code”). The Code in Section 4.03.200 exempts from sales tax all sales made to charitable organizations in the conduct of their regular charitable functions and activities. Tax-exempt status is not effective until explicitly granted by the Town, and it is subject to review and revocation at any time.

A “charitable organization” under the Code must meet two criteria:

1. Be a nonprofit organization under Section 501(c)(3) of the Internal Revenue Code; and
2. Be an organization that exclusively, and in a manner consistent with existing laws and for the benefit of an indefinite number of persons or animals, freely and voluntarily ministers to the physical, mental, or spiritual needs of persons or animals, and thereby lessens the burden of government.

Please apply for exempt status in order to avoid disputes regarding tax exempt status. Upon receipt of the completed Application for Certificate of Tax Exemption for Charitable Organizations (PDF) and all required supplementary documentation, the Town will review your request and issue a decision. Please note: tax exemption for charitable organizations is separate from tax exemption for qualified nonprofit organizations.  If you have any questions, please email the Sales Tax Division or call 303.805.3228.