Tax Exemption for Qualified Nonprofit Organizations

The Town of Parker’s laws regarding sales tax exemption may differ from other taxing authorities, and qualified nonprofit organizations (generally “hospitals and medical education or research organizations”) requesting sales 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 sales tax exempt status, a qualified nonprofit organization must complete the Application for Certificate of Tax Exemption for Qualified Nonprofit Organizations to request the Town of Parker’s determination on whether it qualifies for exemption from municipal sales tax under the Town of Parker Municipal Code (the “Code”).  The Code in Sec. 4.03.200 exempts from sales tax all sales made to, billed directly to, and paid directly by, a qualified nonprofit organization.  Tax-exempt status is not effective until explicitly granted by the Town, and it is subject to review and revocation at any time.

A “qualified nonprofit organization” means any of the following:

a.  An organization that is a public charity as defined by Section 509(a)(1) and Section 170(b)(1)(A)(iii) of the United States Internal Revenue Code, Title 26, U.S.C., as amended;
b.  A corporation or trust that is exempt from federal income tax under Section 501(c)(3) of the United States Internal Revenue Code, Title 26, U.S.C., as amended, and owns or employs personal property or improvements that are used in the operations of one or more organizations described in Paragraph (a) above; and either
     1.  Directly controls, or is controlled by, one or more organizations described in Paragraph      (a) above; or
     2.  Is controlled by a management organization as defined in Paragraph (c) below in common with one or more organizations described in Paragraph (a) above; or
c.  An organization that is exempt from federal income tax under Section 501(c)(3) the United States Internal Revenue Code, Title 26, U.S.C., as amended, and a principal function of which is to manage the property or operations, or both, of one or more organizations described in Paragraphs (a) or (b) above; and
d.  A partnership, limited partnership, limited liability limited partnership, limited liability partnership, limited liability company, or joint venture if all of the partners, members, joint venturers or other participants in such partnership, limited partnership, limited liability limited partnership, limited liability partnership, limited liability company or joint venture are organizations described in Paragraphs (a), (b) or (c) above.

Please apply for exempt status using the Application for Certificate of Sales Tax Exemption for Qualified Nonprofit Organizations in order to avoid disputes regarding sales tax exempt status. Upon receipt of the completed Application for Certificate of Sales Tax Exemption for Qualified Nonprofit Organizations and all required supplementary documentation, the Town will review your request and issue a decision.  Please note: tax exemption for qualified nonprofit organizations is separate from tax exemption for charitable organizations.  If you have any questions, please email the Sales Tax Division or call 303-805-3228.