The state’s guidance in the Nonprofit Organizations Industry Guide states:
- Any nonprofit organization that makes taxable sales must collect and pay tax on the sale unless one of the following applies:
- The state’s fundraising exemption applies (see Fundraising Sales)
- The sales qualify for another exemption
- Taxable sales include:
- Gift shop sales at a nonprofit museum
- Sales of used furniture, appliances, and other items operated by a nonprofit organization
- Sales of books, manuals, CDs, and other taxable literature to its members on a regular basis.
Certain sales by nonprofit organizations are exempt if they are “fundraising sales” and are not regularly carried out. Fundraising sales are exempt only if they are not made on a regular basis.
Sales that are not fundraising sales are taxable regardless of if they are made regularly or irregularly unless they qualify for the occasional sales exemption.
If the commemorative books will be sold at regularly scheduled Mass or other regular activity, those would not be considered “fundraising events.” Use this helpful flowchart released by the MN Department of Revenue.
All sales of books in MN are generally taxable unless an exemption applies.
You may qualify for the occasional sales exemption provided that:
- The sale is not part of your regular business activities.
- The books are not considered inventory being sold as part of an ongoing operation.
- The sale is isolated and irregular, meeting the conditions outlined in Fact Sheet 132.
For full details in Fact Sheet 132, Isolated and Occasional Sales.
If the sale of books is truly an isolated event and does not qualify as a regular business activity or ongoing offering, it would not impact the fundraiser as long as the conditions of the occasional sale exemption are met.
You can email salesuse.tax@state.mn.us if you have additional questions.
