Q: Does being a 501(c)(3) organization automatically make my church exempt from state sales tax?
A: No. Being a registered 501(c)(3) non-profit only grants your organization federal income tax exemption. Sales tax is strictly governed at the state level, meaning you must apply for and hold a specific, state-issued sales tax exemption certificate depending on your state's individual laws.
Q: What are the requirements for our organization name and certificate in Tithely?
A: Your church or organization's name in Tithely must exactly match the legal entity name or "Doing Business As" (DBA) listed on your tax-exempt certificate. Additionally, "Tithely" or "YourGiving Inc" must be explicitly listed on your Sales Tax Certificate. Note that if your existing church name in Tithely does not match the certificate and you update it, this currently will not sync with Stripe.
Q: How do I check my sales tax status and upload my exemption certificate?
A: Navigate to the Sales Tax or billing section of your Tithely dashboard. Your status will show as Tax Exempt, Taxable, Pending, Approved/Denied, or display an Expiration Date. You can securely upload your certificate directly within the Tithely product interface or through ExempTax.
Q: What should I do if my tax-exempt certificate is denied?
A: You will receive an in-app or email notification indicating the decision. If your certificate is denied, verify that your legal name matches exactly and that "Tithely" or "YourGiving Inc" is explicitly listed on the document. Once corrected, you can re-upload your document, and the review process will follow the same steps as your initial submission (you will receive a notification once it is approved or denied).
Q: How does Tithely determine state nexus and taxability?
A: Tithely evaluates its business connection to a state (nexus) based on employees or revenue thresholds once per year, with the next update occurring in September. If Tithely's nexus status changes or if state laws change (such as California taxing software-as-a-service starting January 1, 2027), you will be proactively notified.
Q: Which states allow churches and 501(c)(3)s to be exempt from sales tax?
A: If you are located in one of the following states, you can avoid sales tax by uploading a valid state exemption certificate:
Maryland (MD)
Massachusetts (MA)
New York (NY)
Ohio (OH)
Pennsylvania (PA)
Tennessee (TN)
Texas (TX)
West Virginia (WV)
Q: Are there states where non-profits are NOT exempt from sales tax?
A: Yes. Due to specific state laws, non-profits cannot be exempt from sales tax on software in Alabama, Arizona, California (starting 1/1/2027), Hawaii, Iowa, South Carolina, South Dakota, and Washington.
Q: What happens when my tax-exempt certificate expires?
A: If you use ExempTax, you will receive an email notice 30 days before your expiration date prompting you to upload a new certificate, followed by a final reminder one week prior. Once you upload your new certificate, it will go through the same review process as your initial upload, and you will receive an in-app or email notification indicating whether it has been approved or denied.
Q: If I upload my tax-exempt certificate after being billed, can I get a refund?
A: No. Tithely is not authorized to refund sales taxes that have already been collected. You will need to upload your valid certificate via ExempTax for future billing and reach out directly to your state's Department of Revenue to request a refund for past charges.
Q: Do I have to use ExempTax to upload my certificate?
A: No. While ExempTax is a secure and trusted option, you can also securely upload your tax-exempt certificate directly within your Tithely product dashboard.
Q: What documents are generally required to apply for state sales tax exemption?
A: Most states require proof of your federal 501(c)(3) tax-exempt status (IRS Determination Letter) and your governing documents, such as Articles of Incorporation, Bylaws, and recent financial statements or a proposed budget.
Q: How do I apply for a state sales tax exemption certificate in Texas, Tennessee, or Ohio?
Texas: Complete Form AP-209, submit it with required documentation to the Texas Comptroller of Public Accounts, and wait 4-6 weeks for your certificate.
Tennessee: Complete Form RV-F1306901 and mail it with proof of 501(c)(3) status to the TN Department of Revenue. (Renews automatically every 4 years).
Ohio: Churches are automatically exempt by law under R.C. 5739.02(B)(12). Simply download the state's standard exemption certificate, complete it, and provide it directly to vendors.
Q: How do I apply for a state sales tax exemption certificate in Pennsylvania, New York, or Maryland?
Pennsylvania: File Form REV-72 online through the myPATH portal and upload governing documents, financial records, and your IRS letter. (Renews every 5 years).
New York: Complete Form ST-119.2 and mail it with proof of religious purpose to the New York State Tax Department.
Maryland: Apply online via the Maryland Tax Connect Portal, upload governing documents and your IRS letter, and provide details for at least two authorized officers. (Renews every 5 years).
Q: How do I apply for a state sales tax exemption certificate in Massachusetts or West Virginia?
Massachusetts: Register on the MassTaxConnect portal, submit an application using your IRS letter to receive Form ST-2, and download Forms ST-5 and ST-5C to present to vendors.
West Virginia: Register via the WV One Stop Business Portal or submit Form WV/BUS-APP to get a Business Registration Certificate. Then, complete SSTGB Form F0003 with your business ID and present it to vendors.
Q: How often do I need to renew my state tax-exempt certificate?
A: Renewal requirements vary by state. Tennessee automatically renews every 4 years, Maryland and Pennsylvania require active renewal every 5 years, and Ohio does not require renewal as the exemption is statutory. Always check your specific state's Department of Revenue guidelines.
Q: What if my state isn’t listed here?
A: As of today, Tithely is not required to collect sales tax in states not listed above because we have not reached economic nexus (the required business presence) in those jurisdictions. However, other states do require sales tax collection or offer their own exemption certificates. We recommend searching your state's Department of Revenue or Comptroller website for "Sales and Use Tax Exemption for Nonprofits" to see exactly how your state manages sales tax for churches and non-profits.
Q: Can individual church members use the exemption certificate for personal purchases?
A: No. To qualify for tax-exempt purchases, the items or services must be billed directly to the church and paid for directly from the church treasury.