Good news in at least one state – Kentucky has lifted their sales tax on nonprofit events. As we’ve written about before, sales tax is going to be an increasingly complex labyrinth for races and even nonprofits to navigate. With 50 different states instituting 50 different methods of collecting taxes (not including local jurisdictions like in New York State. With different rates for add-ons, race fees, and other items adding even more complexity. The tax map comes from the Tax Foundation.
Giving USA has recently published a helpful summary of taxes and filings required by each state for nonprofits. The cost is $19.95, but if you need summary information across states as well as contact information within each state, this is a good report. Reading it will also give you an understanding of the complexity even for nonprofits. Here is a sample of the information they give (and the diversity between two states:
RunSignup is working with a consultant in this area to understand our obligations better as well as the obligations of races. Over the coming months and years, we will be instituting a number of changes required by states and trying to provide pointers for races and nonprofits to learn more about their obligations and how to fulfill them.