TO AMEND THE LAW CONCERNING THE GROSS RECEIPTS TAX; AND TO CREATE A GENERAL SALES AND USE TAX EXEMPTION FOR SALES TO QUALIFIED NONPROFIT ORGANIZATIONS.

Fiscal Impact Statement Bill: HB1671 Bill Subtitle: TO AMEND THE LAW CONCERNING THE GROSS RECEIPTS TAX; AND TO CREATE A GENERAL SALES AND USE TAX EXEMPTION FOR SALES TO QUALIFIED NONPROFIT ORGANIZATIONS. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Rep. L. Johnson Basic Change: HB1671 creates an exemption from sales and use tax for sales to qualified nonprofit organizations. A qualified nonprofit organization is an organization that: • Is an exempt organization under 26 U.S.C. § 501(c)(3) as it existed on January 1, 2025; • Has an annual operating budget of less than $200,000; and • Performs charitable community-based services in the state to benefit residents that are in need of assistance. Under HB1671, the sale of tangible personal property, taxable services, and taxable digital goods to a qualified nonprofit organization would be exempt if the total gross receipts is $2,000 or less. A nonprofit organization requesting to be recognized as a qualified nonprofit organization must apply with the Department of Finance and Administration (DFA). DFA is required to respond in writing by