M-5014 Exempt Organization Certificate

1 ExemptOrganizationCertificateFORM ST- 5 new jersey Division of TaxationDecember 2000 Non-Profit New jersey , all sales are taxable unless theyare specifically exempted by law. However, cer-tain non-profit organizations, such as churches,charitable and scientific organizations, rescuesquads, and volunteer fire and ambulance com-panies, may purchase certain supplies and serv-ices without paying sales you, as the representative of an approvedexempt Organization , purchase merchandise andservices to be used exclusively by the organiza-tion, you are not required to pay sales tax pro-vided you furnish a copy of the Organization sNew jersey Exempt Organization Certificate (Form ST-5) to the seller.

2 What Is a New jersey ExemptOrganization Certificate ? The Exempt Organization Certificate is one ofseveral exemption certificates issued by the NewJersey Division of Taxation. The Exempt Organi-zation Certificate , which is available only toapproved non-profit organizations, authorizes anorganization to purchase merchandise and serv-ices for its exclusive use without paying sales tax. Who May Use the ExemptOrganization Certificate ? Only organizations which have been grantedexempt status by the New jersey Division ofTaxation may use the New jersey ExemptOrganization Certificate to make purchaseswithout paying New jersey sales examples of organizations which mayhave Exempt status are churches, hospitals,veterans organizations and fire citizens clubs, political organizations andfraternal organizations, such as the Knights ofColumbus, the Elks, the Rotary and KiwanisClubs.

3 Are not eligible for Exempt status and theymay not issue New jersey Exempt NOTE: The Federal government, theUnited Nations, the State of New jersey and any of theiragencies are Exempt organizations. However, they do notuse Exempt Organization Certificates. For these govern-mental agencies, the acceptable proof of exemption fromsales tax is: A copy of a government purchase order, official contractor order on official government letterhead and paymentby government check or payment by a United States ofAmerica SmartPay Visa Card or MasterCard with thenumber 0, 6, 7, 8 or 9 as the sixth digit (credit cardcharged to and paid directly by the Federal government,not a card charged to an employee who gets reimbursedby the Federal Government).

4 Or For government cash purchases of $150 or less, anST-4 form signed by a qualified government official (notacceptable for room occupancies). How Does My Organization Apply forExempt Status? To apply for Exempt status, your organizationmust file an Application For Exempt Organi-zation Certificate (Form REG-1E) with NewJersey. This should be accompanied by your: Articles of Organization (Articles of Incorpora-tion, charter, trust agreement or constitution)and by-laws; and Internal Revenue Service Determination Letter,stating that your Organization is Exempt fromFederal Income Tax under Section 501(c)(3) ofthe Internal Revenue Code (not required fromvolunteer fire companies, and emergency, firstaid, veterans and parent-teacher organizations).

5 The application should be sent to: ExemptOrganizations, c/o Regulatory Services Branch,New jersey Division of Taxation, PO Box 269,Trenton, New jersey approved, your Organization will receiveonly one Exempt Organization Certificate . Yourorganization s name, address and Exempt organi-zation number, as well as the signature of theDirector of the New jersey Division of Taxation,will appear on this Exempt Organization CertificatesYou should reproduce your original Certificate (photocopying is customary) and use these copieswhen purchasing merchandise and services for theexclusive use of your Organization .

6 You mustretain your original Certificate permanently inyour records. When May My Organization Use anExempt Organization Certificate ? A registered Exempt Organization may use thecertificate when purchasing the following: Merchandise provided it is directly relatedto the purposes of the Exempt Organization . Ex-amples include pews, flowers, cleaning equip-ment, furniture and : Reverend Brown, the minister of aregistered Exempt New jersey church, pur-chases a new desk for the exclusive use of thechurch s Sunday School. Reverend Brown maygive the seller a copy of the church s ExemptOrganization Certificate instead of paying salestax on the desk.

7 However, if Reverend Brownpurchases a desk for personal use, he may notuse an Exempt Organization Brown must pay sales tax on thepurchase price of the desk. Services provided they are performed on theorganization s real property (buildings, land) orthe Organization s personal property (photo-copiers, public address system, appliances).Example: A registered Exempt New Jerseyhospital has two floors of rooms painted by aprofessional painter. The hospital gives thepainter a copy of its Exempt Organization Cer-tificate and pays no sales tax on the price of thepaint or on the painter s charges for labor.

8 Meals in Restaurants provided the organi-zation pays for the meals directly from organi-zation funds. If a representative of the or-ganization pays for a meal personally, with theintention of being reimbursed by the organiza-tion, that representative may not furnish anExempt Organization Certificate instead ofpaying sales : A registered Exempt historical soci-ety sponsors a trip to a colonial restoration in theState. At lunch, the Organization may provide acopy of its Exempt Organization Certificate andpay no sales tax on the price of the , if a member purchases a meal andpays for it personally, that member may not usean Exempt Organization Certificate , but mustpay sales tax on the price of the meal.

9 Rooms in Hotels and Motels provided theorganization pays the bill for the room on itsown voucher. If a member of the organizationpays for a room personally, with the intentionof being reimbursed by the Organization , thatmember may not use an Exempt OrganizationCertificate and must pay sales : The executive committee of a regis-tered Exempt New jersey fire company holds itsannual dinner meeting in a local hotel. Thegroup may use an Exempt OrganizationCertificate and pay no sales tax on the cost ofthe dinner and rooms paid for by the : When your Organization makes additional pur-chases from the same supplier, you need not provide a newcopy of your Certificate for each purchase which is of asimilar type.

10 Additional purchases may be covered by thefirst copy you give to your supplier. What Information Must I Enter on MyExempt Organization Certificate ? Date of purchase The name of the vendor The merchandise or service you are purchasingYour Organization s name and the exemptorganization number assigned will appear on theoriginal Certificate you : Do not issue your original Certificate !Accepting Exempt Organization Certificates Who May Accept New jersey ExemptOrganization Certificates? Only businesses that are registered with NewJersey may accept New jersey Exempt Organiza-tion Certificates.